The “One Big Beautiful Bill Act of 2025” marks a significant shift for those purchasing aircraft, permanently reinstating 100 percent bonus depreciation (also known as immediate expensing) for new and used aircraft acquired and placed in service on or after Jan. 20, 2025. This legislation replaces the phasedown approach introduced by the Tax Cuts and Jobs Act of 2017.
The legislation provides advanced planning opportunities for current and prospective aircraft owners. There is a potential narrow path for aircraft owners (and future aircraft owners) that executed aircraft purchase agreements prior to the effective date of Jan. 20, 2025, to claim 100% bonus depreciation. Members of the NBAA Tax Committee have prepared an in-depth, members-only resource reviewing the legislation and treasury regulations addressing the relevant concepts, including self-constructed property, written binding contract and economic performance.
Review the resource 100% Bonus Depreciation, Advanced Technical Implications (PDF)
International Business Aviation Council Ltd.