The recent signing of the One Big Beautiful Bill Act (OBBBA) by the Trump administration on July 4, 2025 is great news for those looking to acquire aircrafts. For aircraft buyers, this means major tax advantages and enticing incentive to invest in aviation assets.
What Is Bonus Depreciation?
Originally set into place with a phase-out schedule in the Tax Cuts and Jobs Act (TCJA) of 2017, bonus depreciation was enacted to provide tax savings and cash flow management for eligible business investments in assets like aircraft and machinery.
Bonus depreciation helps to reduce tax liability and is advantageous for managing end-of-year taxes and optimizing cash flow. The reinstatement of the 100% bonus depreciation is an excellent opportunity to upgrade aircraft and fleets or enter private aircraft ownership with enticing financial incentive.
What the OBBBA Changes
The bonus depreciation phase-out schedule established in 2017 was set to decrease the bonus depreciation by 10% annually with benefits ending in 2027. The terms of the OBBBA restore 100% bonus depreciation permanently with no scheduled phase-out, reinforcing the administration’s support for business asset investments.
Who Qualifies?
To qualify for the bonus depreciation, business use must account for a minimum of 50% of the aircraft’s usage. Both new and pre-owned aircraft are eligible and financing does not affect eligibility. Under the provisions of the OBBBA, eligible aircraft include:
- Piston planes
- Turboprops
- Jets
- Helicopters
How Premier Supports Strategic Purchases
Premier is here to support new and seasoned aircraft owners and businesses with smart-buying through thorough pre-purchase inspections. Our team conducts inspections with a high level of expertise to ensure compliance and build confidence in both buyers and sellers throughout the aircraft acquisition process.
With extensive experience in supporting clients and flight departments, our team has built a stellar reputation for exceptional service and top-quality work. Our pre-purchase inspections have often led to long-term relationships for ongoing maintenance and MRO services.
The first step in taking full advantage of the 100% bonus depreciation is a pre-purchase inspection that builds confidence in acquisitions. With limited spaces and schedules filling up quickly, we recommend securing your inspection today. Connect with Premier today to learn more about bonus depreciation and how our team can support you in getting the most out of this exciting financial opportunity.