100% Bonus Depreciation – What it Means for Aircraft Buyers
Business aircraft owners — and prospective buyers — recently got a boost, as the One Beautiful Bill Act permanently reinstated 100% bonus depreciation for qualified business aircraft purchases.
This change reopens one of the most powerful tax incentives available to corporate flight departments, aircraft owners who need to upgrade, and new entrants into private aviation ownership.
How should current and future aircraft owners handle this new law and tax benefit? Clay Lacy Aviation is an orchestrator and advisor to prospective owners. They are experts in building flight operations, and will personalize to get the most out of their aircraft ownership experience.
Additional First-Year Depreciation Deduction Impact
- Full, immediate deduction: Businesses can write off the entire purchase price of a new or used aircraft in the year it’s placed in service. For a $10 million jet, that means a $10 million deduction in the same tax year.
- Stronger cash flow: Instead of stretching depreciation over several years, 100% bonus depreciation on aircraft allows buyers to accelerate deductions, freeing up liquidity for reinvestment or operations.
- Applicable to upgrades and improvements: Qualifying modifications such as avionics updates, cabin refurbishments or performance enhancements also fall under 100% bonus depreciation.
- Section 179 expansion: The maximum immediate deduction under Section 179 has also been raised to $2.5 million, giving smaller operators or buyers another valuable option.
What to Know About Accelerated Bonus Depreciation Timing
To capture the tax benefits in 2025, aircraft buyers need to ensure:
- Acquisition and delivery are completed before year-end: Pre-buy inspections, contracting, financing, and modifications all take time, so starting early is critical.
- The 50% business-use requirement is met: Flights must qualify as business usage under IRS rules to maximize deductions.
- Tax planning aligns with income cycles: For example, if a business expects a $10 million profit later this year, securing and placing an aircraft into service before December 31 could offset that entire tax liability.
Aircraft Management: The Next Steps for a Better Owner Experience
- Cost savings through scale and expertise: Clay Lacy aircraft management lowers operating expenses through fleet leverage and scale, including insurance, operations, maintenance and fuel savings.
- Expert crew, planning and financial oversight: The best crew flies owners’ aircraft, while a dedicated ground team and financial manager handle every detail, strategically planned with transparent data at their fingertips.
- Operational efficiency and reliability: Superior dispatch reliability and access to FAA Part 145 Repair Stations, 24/7 AOG response teams ensure limited downtimes.
- Customized management solutions: From supporting flight departments to complete turnkey management, Clay Lacy tailors solutions to the client’s needs, including offsetting ownership costs with charter revenue.
Private Aviation’s Next Opportunity
The return of 100% bonus depreciation marks a pivotal opportunity for business aviation, lowering the effective cost of acquiring and operating an aircraft. As new owners enter the market and current owners look to upgrade their fleet, Clay Lacy is ready to assist — providing the solutions and strategy needed.
