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

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Edited By: tccjeremy

President Donald Trump speaks [Shutterstock/Chip Somodevilla]

Key Takeaways:

President Trump has announced plans to reinstate 100% bonus depreciation, which would allow businesses to immediately deduct the full cost of qualifying assets, such as aircraft, in the year of purchase.
This proposed change is expected to significantly benefit the aviation industry and business owners by offering substantial tax savings and increased cash flow, thereby stimulating economic growth and investment.
For businesses considering aircraft acquisitions, the announcement serves as a call to action to plan quickly, as increased demand could lead to higher prices if the policy is implemented.
While the reinstatement promises considerable economic stimulus and competitive advantages for businesses, it requires congressional action to become law, necessitating careful planning and expert consultation for those looking to capitalize on the opportunity.

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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.