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The 2025 Tax Act: 100% Bonus Depreciation for Aircraft is Back

The landscape of private aircraft acquisition has just been fundamentally altered. As part of our official press coverage at the 2025 NBAA Business Aviation Convention & Exhibition (NBAA-BACE) in Las Vegas, the 5 Star Jets team received firsthand analysis of a game-changing new law: the “One Big Beautiful Bill Act of 2025” (OBBBA).

Signed into law on July 4, 2025, this legislation is the most significant financial incentive for aircraft buyers in nearly a decade. It creates a powerful, immediate opportunity for savvy buyers, but it also contains highly technical details that must be navigated correctly.

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A Generational Opportunity for Aircraft Buyers

The most critical update for our clients is the permanent restoration of 100% bonus depreciation. 

This new law replaces the previous Tax Cuts and Jobs Act (TCJA) phase-down, which had reduced the 2025 deduction to only 40% (or 60% for certain aircraft). The OBBBA permanently allows a 100% bonus depreciation deduction for both new and used aircraft that are “acquired” and “placed in service” on or after January 20, 2025.

What this means for you: This is one of the most significant financial incentives for aircraft ownership. It creates a powerful opportunity to significantly reduce the net cost of an acquisition by potentially deducting the full purchase price from your taxable income in the first year.

The beautiful interior design of the Citation Longitude

Why You Need Expert Guidance Now

While this opportunity is massive, the new law contains highly technical details that demand expert interpretation. Eligibility for the 100% bonus depreciation hinges on complex definitions of exactly when an aircraft is “acquired.”

This is especially critical for buyers who signed purchase agreements before the January 20, 2025 effective date. A “narrow path” may still exist for these buyers to claim 100% depreciation, but it requires a complex analysis of the “Written Binding Contracts” and “Self-Constructed Property” rules. The rules also differ for new vs. used aircraft acquisitions, as used aircraft contracts tend to have a shorter duration between execution and closing.

Download the Official NBAA Resource

To navigate this complex landscape, expert tax consultation is essential. As a service to our clients, 5 Star Jets is providing the official NBAA resource, “100% Bonus Depreciation, Advanced Technical Implications,” which we received directly from the association at NBAA-BACE.

This document provides the in-depth analysis your legal and tax advisors need to help you take full advantage of this new law.

DOWNLOAD THE OFFICIAL NBAA PDF NOW

Secure Your Aircraft Before the Market Reacts

As noted in the NBAA’s analysis, 100% bonus depreciation has historically had a material impact on market conditions. This new incentive is expected to significantly increase the number of aircraft buyers and, consequently, aircraft prices. 

Our expertise at 5 Star Jets is in helping you navigate these changes. We not only understand the market but also the critical pitfalls to avoid, such as “qualified business use” rules, state tax decoupling, and at-risk rule. We work with your legal and tax team to ensure your acquisition is structured correctly from the start.

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Frequently Asked Questions (FAQs)

What is 100% bonus depreciation?

Bonus depreciation is a tax incentive that allows a business to immediately deduct a large percentage (now 100%) of the purchase price of eligible assets, such as an aircraft, in the first year they are placed in service, rather than depreciating them over several years

Does this new law apply to used aircraft?

Yes. The OBBBA permanently allows for 100% bonus depreciation for both new and used qualifying aircraft acquired and placed in service after January 19, 2025. This is a significant change and a massive opportunity for buyers in the pre-owned market.

What if I signed my purchase contract in 2024?

You may still be eligible, but your situation is highly complex. The NBAA report details a potential “narrow path” that depends on whether your contract is a “Written Binding Contract” and whether the aircraft can be treated as “Self-Constructed Property.” We strongly urge you to download the report and speak with your tax advisor immediately.

Is this 100% bonus depreciation permanent?

The OBBBA has made the 100% bonus depreciation permanent, meaning it has no scheduled phase-down like the TCJA did. However, as with any tax law, it remains subject to potential future legislative changes.

Disclaimer: This information is being provided for general information purposes only and should not be construed as legal or tax advice. 5 Star Jets urges you to consult your own attorney or other tax advisor concerning your specific situation and facts.