At Cirrus Aviation Services, we’re committed to helping clients navigate not only the skies—but also the financial landscape that supports smart aviation decisions. One of the most impactful updates for business aircraft owners and operators this year is the permanent reinstatement of 100% bonus depreciation, signed into law by President Trump on July 4, 2025, as part of the One Big Beautiful Bill Act (H.R.1).
This development presents a significant opportunity for businesses considering aircraft acquisitions. Here’s what you need to know.
What Is Bonus Depreciation?
Bonus depreciation is a tax provision that allows businesses to immediately deduct a large portion—or all—of the cost of qualifying assets, such as aircraft, in the year they are placed into service. This accelerated depreciation can significantly reduce a company’s taxable income.
Originally introduced under the Tax Cuts and Jobs Act of 2017, the 100% bonus depreciation provision applied to both new and used business aircraft. However, it began phasing down in 2023, with scheduled reductions through 2026.
What Changed in 2025?
In a major win for business aviation, Congress passed and the President signed the One Big Beautiful Bill Act that permanently restores 100% bonus depreciation for qualifying property—including aircraft—with no scheduled phase-out period.
Key Facts:
- Applies to both new and pre-owned aircraft.
- Aircraft must be used at least 50% for business purposes, with at least 25% meeting qualified business use standards.
- To qualify, the aircraft must be acquired and placed in service after January 19, 2025.
- This provision is permanent, with no current expiration date or scheduled phase-down.
Who Benefits?
This tax incentive is most relevant for:
- Business owners seeking to purchase or upgrade aircraft for executive or operational use.
- Companies expanding corporate travel capabilities or replacing older jets.
- High-net-worth individuals using aircraft predominantly for business travel.
To qualify, owners must demonstrate that the aircraft is used at least 50% for business purposes, with at least 25% meeting the more restrictive “qualified business use” standard. Appropriate records and usage logs must be maintained.
Strategic Impact
The permanent reinstatement of 100% bonus depreciation can dramatically improve the after-tax economics of business jet ownership. For example, a business purchasing a $10 million aircraft and meeting all qualification requirements could deduct the full $10 million in the first year—substantially reducing its taxable income and improving cash flow.
Combined with the advantages of private aviation—such as time savings, security, and operational control—this financial incentive makes a strong case for accelerating acquisition plans.
What to Consider
While this provision creates a clear advantage, it’s critical to:
- Engage with an aviation tax attorney or CPA familiar with IRS rules specific to aircraft.
- Ensure that the aircraft acquisition timeline, usage plans, and documentation align with compliance requirements, particularly the January 19, 2025 effective date.
- Understand how bonus depreciation interacts with other tax planning strategies, particularly for pass-through entities or corporate structures.
- Maintain detailed records demonstrating the required business use percentages.
Act on This Permanent Opportunity
The opportunity to deduct 100% of a business aircraft’s cost is now a permanent feature of the tax code for qualifying aircraft acquired and placed in service after January 19, 2025. This represents some of the most favorable conditions for aircraft acquisition in years.
To learn more about how Cirrus Aviation Services can support your ownership strategy, contact our team today.
Fly smarter. Travel better. Invest wisely.
