What the 2025 Bonus Depreciation Bill Means for General Aviation and Business Aircraft Buyers

Tax Breaks, Jets, and Big Decisions

It’s shaping up to be a landmark year for general aviation and savvy business owners eyeing the sky. Tucked inside Congress’s 2025 budget proposal is a power-packed provision that could change the game for private aircraft acquisition: the return of 100% bonus depreciation. For aircraft buyers and operators who use their planes more than 50% for business, this could be one of the most valuable tools in their financial arsenal. But what is it, what’s the catch, and where do things stand? Let’s break it down.

A Quick Refresher: What Is Bonus Depreciation?

Bonus depreciation is a tax incentive that allows businesses to deduct a significant portion – or even all – of the cost of qualifying assets (like aircraft) in the year they are placed in service. Originally supercharged by the Tax Cuts and Jobs Act of 2017, the deduction peaked at 100% but began phasing down starting in 2023:

• 80% in 2023
• 60% in 2024
• 40% in 2025 (under current law)
• 20% in 2026
• 0% in 2027

That downward trend had business aviation circles buzzing with concern – until now.

The Comeback Clause: Congress Gets Busy

Enter the “One Big Beautiful Bill Act of 2025” (OBBBA). This sweeping tax and budget proposal, championed by the House in May and now under Senate review, includes a resounding return to 100% bonus depreciation for qualifying assets placed in service on or after January 20, 2025.

Yes, you read that right: full expensing is back on the table.

The House version extends the benefit through the end of 2029. The Senate version? They want it permanent. Either way, the bonus depreciation provision has strong bipartisan appeal, especially in industries like manufacturing and aviation that see real economic ripple effects from such policies.

How This Affects Aircraft Buyers

Here’s where things get really interesting for general aviation.

If you buy an aircraft and use it for business more than 50% of the time, you may be able to write off 100% of its cost in the year it enters service. Think about it: a $5 million jet, written off in full, could generate roughly $1.8 million in tax savings (depending on your effective tax rate).

No gimmicks. No spreading deductions over years. Just immediate impact to your bottom line.

What Qualifies? (And What Doesn’t)

To be eligible for bonus depreciation:

• The aircraft must be used primarily (i.e., >50%) for business.
• It can be new or pre-owned, as long as it’s the taxpayer’s first use.
• It must be placed in service (ready and available for use) on or after Jan 20, 2025.

Personal flights don’t count. Weekend getaways to Aspen? Sorry. But if you’re flying to client meetings, job sites, or even repositioning for a business event, you may be on solid ground.

And yes, IRS documentation rules are strict. Owners will need to keep meticulous flight logs, record business purposes, and track usage percentages. Think of it as the paper trail that protects your tax trail.

The FlyUSA Angle: Why This Matters for Our Clients

At FlyUSA, we’ve seen firsthand how bonus depreciation drives activity. From jet brokers and tax advisors to maintenance shops and insurance underwriters, the whole ecosystem tends to accelerate when these incentives are in play.

If you’re considering an aircraft for business use, the window of opportunity could be opening wider than it has in years. But there are a few practical realities to keep in mind:

• Inventory Crunch: Aircraft inventory remains tight. If 100% depreciation becomes law, competition for quality aircraft will heat up.
• Pre-Buy Bottlenecks: Inspections, due diligence, and pre-buy slots can get booked out months in advance.
• Accountant Availability: If your CPA specializes in aviation clients, get on their calendar now. This fall could be hectic.

FlyUSA is ready to assist every step of the way — from acquisition planning to introductions with trusted aviation tax advisors.

IRS & FAA: Watchdogs on the Wing

Of course, any tax benefit comes with scrutiny.

The IRS has ramped up audits related to business aircraft, especially focusing on:

• Business vs. personal use classification
• Fringe benefit income reporting for personal flights
• Documented use logs and purpose verification

Falling below the 50% business-use threshold in any year after claiming bonus depreciation could trigger a recapture event – basically, the IRS claws back prior deductions. Not ideal.

Meanwhile, FAA regulations also come into play. Improper leasing or structuring (like forming an LLC just to “rent” your own jet back to yourself) can draw FAA attention. FlyUSA always recommends pairing tax planning with aviation legal compliance. We can connect you with professionals in both lanes.

Industry Cheers: Aviation Groups Applaud the Move

The NBAA, AOPA, and GAMA have all come out in strong support of the bonus depreciation revival. Their reasoning is simple: this incentive drives capital investment, supports thousands of aviation jobs, and boosts innovation in American manufacturing.

NBAA president Ed Bolen put it succinctly: “Immediate expensing of aircraft and equipment helps American companies compete in a tough global marketplace.”

We agree.

Looking Ahead: What Happens Next?

As of July 1, 2025, the bill is working its way through the Senate. While the broader budget package is complex and subject to revision, the bonus depreciation clause is widely expected to survive negotiations. If the Senate passes a similar version, we could see final reconciliation and signature into law by late summer or early fall.

That means:

• If you’re in the market: Start planning.
• If you’re evaluating tax implications: Talk to your advisors.
• If you’re unsure: Let FlyUSA help you navigate the skies.

Takeaway: Bonus Opportunity on the Horizon

This is more than a tax perk. It’s a catalyst for business investment, a motivator for efficient travel, and a chance for smart buyers to gain altitude — financially and literally.

FlyUSA is here to help you seize the opportunity. We handle the logistics. We guide you through acquisition. We connect you with aviation CPAs and experts who know the ins and outs of bonus depreciation compliance.

If you’re ready to put a business aircraft to work for your team, your travel, and your tax strategy – 2025 might be the best year in recent memory to take off.