Everything You Need to Know About Aircraft Bonus Depreciation
The 2025 tax year marks a defining moment in private aviation, presenting significant tax benefits for aircraft buyers that should not be overlooked. The “One Big Beautiful Bill Act” (OBBBA), signed into law in July 2025, re-introduces what is commonly known as bonus depreciation. Under this provision, private jets purchased on or after January 19, 2025 for business purposes can deduct one hundred percent of the aircraft’s purchase price in the year it is placed in service, offering an unparalleled tax incentive.
This change applies to both pre-owned and new aircraft that meet IRS business-use requirements, reversing a previously scheduled phase-out. Instead of depreciating the aircraft over five to seven years, buyers can now claim the entire deduction upfront, delivering an immediate financial advantage. Depending on your tax bracket, this could mean keeping eight to fifteen million dollars in your pocket rather than sending it to the IRS. For many buyers, these tax cuts allow for reinvestment in operations, cabin upgrades or other strategic initiatives.
For example, a corporate buyer at a twenty-one percent tax rate purchasing a forty million dollar aircraft could see an immediate tax savings of 8.4 million dollars. For an individual at a thirty-seven percent tax rate, that same aircraft could yield a tax benefit of 14.8 million dollars.
In practical terms, the effective cost of a forty million dollar private jet for an individual in this bracket drops to 25.2 million dollars after taxes. Beyond the immediate savings, bonus depreciation is especially valuable for those anticipating significant taxable income in 2025, providing a strategic means to shelter income while acquiring a high-value asset for qualified business use.
Industry analysts are projecting a surge in aircraft purchases in the later half of 2025 as buyers and business owners become eager to take advantage of the restored tax treatment amid rising interest rates and tightening capital conditions. For those prepared to act, bonus depreciation offers not only immediate financial efficiency but also a strategic advantage in timing and investment planning.
Navigating aircraft transactions while maximizing tax benefits requires experience, attention to detail and an understanding of each buyer’s unique objectives. Our team guides clients through every step, evaluating both new and pre-owned aircraft to ensure compliance with IRS requirements, coordinating inspections, managing legal reviews and ownership structuring and making sure bonus depreciation is applied accurately to optimize tax savings.
Throughout the process, our brokers provide insights that align aircraft selection with each client’s broader business and financial goals, ensuring the transaction is smooth, efficient and strategically advantageous.