Aviation Tax Alert: 5 Star Jets Analyzes the 2025 Act Restoring 100% Bonus Depreciation for Aircraft
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As part of our official press coverage at the 2025 NBAA Business Aviation Convention & Exhibition (NBAA-BACE), the 5 Star Jets team analyzed one of the most significant topics of the convention: the “One Big Beautiful Bill Act of 2025” (OBBBA). Signed into law this year, this act is a paradigm shift for aircraft acquisition, and its full implications are just now being understood by the market.
This legislation is a game-changer for any individual or corporation considering an aircraft purchase. Here is our expert analysis of what you need to know.
The Old vs. The New Law: A Massive Financial Incentive
Under the previous Tax Cuts and Jobs Act (TCJA), the bonus depreciation deduction was being phased down, with the 2025 rate at only 40% (or 60% for certain aircraft).
The new OBBBA completely reverses this phase-down. It permanently restores the 100% bonus depreciation for qualified new and used aircraft that are “acquired” and “placed in service” after January 20, 2025. This allows a business to potentially deduct the full purchase price from their taxable income in the first year—a massive financial incentive that dramatically reduces the net cost of acquisition.
Why This Is a Critical, Time-Sensitive Opportunity
Historically, 100% bonus depreciation has materially impacted market conditions. This powerful incentive is expected to trigger a significant increase in demand for qualifying aircraft, which will likely lead to an increase in prices.
However, the new law is highly technical. Eligibility hinges on complex definitions of when an aircraft is “acquired,” especially for buyers who signed purchase agreements before the January 2025 effective date. Factors like “Written Binding Contracts” and “Self-Constructed Property” analysis are critical.
Download the Official NBAA Technical Report
Navigating this opportunity requires expert guidance from your financial and legal teams. As a service to our clients, 5 Star Jets is providing the official NBAA technical 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 advisors need. We have created a dedicated resource page where you can read our full summary and download this complimentary PDF.
We urge all prospective buyers to review this information immediately to position themselves to take full advantage of this incentive
Read the Full Analysis & Download the Official NBAA PDF
Media Contact:
Diego Ovalles
Public Relations Executive
diego@5starjets.com
+1 (786) 620-7015
