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 proposed reinstating 100% bonus depreciation, a tax incentive allowing businesses to immediately deduct the full cost of qualifying assets, which is expected to significantly stimulate economic growth, particularly within the aviation industry.
This move would make aircraft purchases much more attractive by providing immediate tax benefits and increasing cash flow for businesses, similar to a provision in the 2017 Tax Cuts and Jobs Act that has been phasing out.
Businesses considering aircraft acquisitions are urged to plan and act quickly to leverage this potential benefit before increased demand could lead to higher prices, though congressional approval is required for implementation.

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.