One Big Beautiful Bill Act Restores 100% Bonus Depreciation, Fueling Surge in Private Jet Acquisitions

Washington D.C. — On July 4, 2025, the United States enacted the One Big Beautiful Bill Act, a legislative change that has restored 100% bonus depreciation for qualifying business property, including eligible aircraft. This significant tax alteration, applicable to aircraft acquired and placed in service after January 19, 2025, allows businesses to deduct the full qualifying cost of an aircraft in its first year of use, a departure from the previous system where depreciation deductions were spread across multiple tax years. The new law also crucially removed the scheduled phaseout that had been incrementally reducing this incentive under the 2017 Tax Cuts and Jobs Act, providing a powerful financial impetus for companies considering private jet acquisitions.

The immediate impact on the business aviation market has been notable. The return of full bonus depreciation offers a compelling reason for eligible businesses to accelerate their aircraft purchases, contributing to an already robust market. Industry forecasts and dealer reports indicate that this change is a significant factor in the current activity. According to Honeywell’s October 2025 business aviation outlook, the tax change is expected to encourage additional purchases, with new business jet deliveries projected to rise by 5% in 2026 compared to 2025. Furthermore, Honeywell forecasts a total of 8,500 new business jet deliveries worldwide between 2025 and 2034.

Market data further underscores this trend. Members of the International Aircraft Dealers Association (IADA) reported 333 closed pre-owned aircraft deals in the first quarter of 2026, marking an increase from 316 deals in the same period a year earlier. The “seismic” impact of the 100% bonus depreciation has already translated into an 11% increase in 2025 jet sales from 2024, and a remarkable 30% increase from 2023 figures. While the tax incentive is not the sole driver of these market dynamics, which also include strong demand, limited inventory in certain categories, and lengthy manufacturer backlogs, it provides a substantial financial justification for eligible businesses to reconsider the timing and structure of their aircraft acquisitions.

For small and mid-sized companies, the ability to deduct the entire cost of a qualifying aircraft in a single tax year can significantly improve cash flow and reduce the net cost of ownership. This incentive extends beyond the initial purchase, encompassing a wide array of operational expenses. Businesses can also deduct costs such as fuel and oil, maintenance and inspections, hangar fees and parking, aircraft insurance, pilot wages or contract pilot services, aircraft management fees, navigation charts, subscriptions and GPS updates, loan interest on financing, airport landing fees and tie-down charges, and even training or recertification expenses. Furthermore, depreciation on upgrades in avionics and certain interior improvements are also deductible, making the overall operational cost more manageable.

In our experience at C&S Finance Group LLC, this reinstatement of 100% bonus depreciation is more than just a tax break; it's a strategic opportunity for businesses to invest in critical assets that can enhance operational efficiency, expand market reach, and ultimately drive growth. We've seen clients, particularly high-income professionals and growing enterprises, leverage such provisions to make substantial capital investments that might otherwise have been postponed. However, navigating the intricacies of qualifying for these deductions, ensuring legitimate business use exceeding 50%, and structuring the ownership correctly—such as setting up an LLC to lease the aircraft to a practice—requires meticulous planning and adherence to IRS guidelines. Our firm specializes in tax preparation and compliance, helping businesses understand and implement these complex strategies effectively.

The strategic implications for businesses are profound. The immediate expensing of a high-value asset like a private jet can dramatically lower taxable income in the year of acquisition, freeing up capital that can be reinvested into other areas of the business, such as expansion, technology upgrades, or talent acquisition. This accelerated depreciation effectively front-loads the tax benefits, making the investment more attractive from a financial planning perspective. It's a powerful tool for wealth protection and smart tax planning, particularly for those with significant business income.

While the incentive clearly aims to stimulate investment, its longer-term influence remains a subject of ongoing observation. Experts are evaluating whether the provision will generate genuinely additional purchases that would not have occurred otherwise, or if it primarily serves to shift planned transactions into earlier tax years. Regardless, the immediate effect is a palpable boost to the private aviation sector. Businesses seeking to capitalize on this significant tax advantage and ensure full compliance should consult with experienced financial advisors. C&S Finance Group LLC, at csfinancegroup.com, assists small and mid-sized companies in navigating complex tax changes like this, helping them optimize their financial strategies and leverage available incentives responsibly.

As the private jet market continues to react to these legislative changes, stakeholders will be closely watching future sales figures and manufacturer delivery schedules for further insights. The IRS and Treasury Department may also face calls to clarify specific aspects of the depreciation rules, especially as businesses explore new ways to utilize the incentive. The sustained impact will depend on both market dynamics and any potential future legislative adjustments to the tax code.