Trump’s Bold Move: 100% Bonus Depreciation Return Could Ignite Aviation Industry

Plan announced Tuesday aims to stimulate economic growth by encouraging businesses to invest in new assets, including aircraft.

Keller Laseter

Wednesday, March 05, 2025 at 10:39 AM ET

Verified

Edited By: tccjeremy

President Donald Trump speaks [Shutterstock/Chip Somodevilla]

Key Takeaways:

President Trump has announced plans to reinstate 100% bonus depreciation, allowing businesses to immediately deduct the full cost of qualifying assets, such as aircraft.
This move aims to stimulate economic growth and is particularly expected to revitalize the aviation industry by making aircraft purchases more financially attractive.
Reinstatement of bonus depreciation would offer significant tax benefits and increased cash flow for businesses, but it requires congressional action and is likely to cause increased demand and potentially higher prices for aircraft.
Businesses considering aircraft acquisitions are advised to plan proactively to take advantage of this potential tax benefit before a market rush occurs.

See a mistake? Contact us.

President Donald Trump has announced plans to reinstate 100 percent bonus depreciation, a move that could revolutionize the aviation industry and provide a significant windfall for business owners. This decision, revealed during Tuesday’s address, aims to stimulate economic growth by encouraging businesses to invest in new assets, including aircraft.

For those unfamiliar with the concept, bonus depreciation allows businesses to immediately deduct a substantial portion of the cost of qualifying assets in the year they are placed in service, rather than spreading deductions over time. The Tax Cuts and Jobs Act of 2017 initially permitted 100 percent bonus depreciation, but this benefit has been gradually phasing out in recent years.