Aircraft Bonus Depreciation In 2025: What Buyers Need To Know

If you’re considering buying a business aircraft in 2025, bonus depreciation just became a much bigger deal—and a lot simpler. Here’s a clear, up-to-date guide to what has changed, who qualifies, and how to prepare so you actually get the deduction you’re expecting.

 

 

New In 2025: 100% Aircraft Bonus Depreciation

The One Big Beautiful Bill Act of 2025 (OBBBA) restores full, immediate expensing for qualified new and used aircraft placed in service on or after January 20, 2025. Unlike prior versions, this provision isn’t scheduled to phase down.

 

In practical terms, that means an eligible aircraft’s entire purchase price can be deducted in the year it’s placed in service, rather than over five to seven years. In addition to restoring 100% bonus depreciation, OBBBA raises Section 179 expensing to $2.5 million with phase-out beginning at $4 million, indexed going forward.

 

What Aircraft Expenses Qualify?

• Aircraft type: Most new or used business aircraft qualify if placed in service on/after the effective date, so long as you didn’t previously use the aircraft or acquire it from a related party (for used). Major components (e.g., spare engines, auxiliary power units) can also qualify.
• Upgrades and improvements: Qualifying improvements such as avionics or cabin refurbishments can be expensed under the 100% bonus rules when placed in service, offering additional planning flexibility.

 

See the Internal Revenue Service Publication 946 webpage for information about how to depreciate property, but note that not all figures have been updated for 2025 as of this posting. Contact the IRS directly for additional information.

 

How Can You Get A Deduction For Your Aircraft?

You are eligible for a 2025 deduction only if the aircraft is acquired and placed in service in 2025, which means it must be delivered and available for its intended business use (not just under contract). Plan for pre-buy, financing, delivery, and any required mods.

 

Keep in mind that some states add back federal bonus depreciation differently, which can leave you with state taxable income even when federal taxable income is zero, so plan accordingly.

 

Get More Information

Contact your tax, legal, or accounting professionals for more information about your aircraft bonus depreciation options. You may also contact the IRS directly for assistance.

 

DISCLAIMER: Currency does not provide tax, legal or accounting advice. The foregoing has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction. Limits and information mentioned is subject to change.