OBBB Act Reinstates 100% Bonus Depreciation, Reenergizes Private Jet Market

With the passage of the Opportunity for Business and Bonus Boost (OBBB) Act, Congress has fully reinstated 100% Bonus Depreciation for qualifying business assets, including both new and pre-owned private aircraft. The legislation applies retroactively to assets placed in service on or after January 20, 2025—a rare mid-month effective date that coincides exactly with the presidential inauguration.
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What’s New: A Presidential Inauguration Start Date

Unlike most tax changes, which apply from January 1 of a calendar year, the OBBB Act’s 100% Bonus Depreciation provision takes effect on January 20, 2025, the day of the new presidential term.

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• Assets placed in service between Jan. 1–19, 2025: Eligible for 40% Bonus Depreciation (per prior law)
  
• Assets placed in service on or after Jan. 20, 2025: Eligible for 100% Bonus Depreciation
  

This unusual cutoff has significant financial implications for aviation and other capital-intensive sectors, especially for buyers who took delivery early in the year.
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Why It Matters: A Surge in Aircraft Demand

The return of full expensing makes aircraft ownership substantially more affordable on an after-tax basis. This has already led to a small spike in buyer activity, especially in

the pre-owned markets.

Sample Tax Impact:

Aircraft Price

$8,000,000

Deduction

$8,000,000

Potential Tax Savings (37%)

$2,960,000

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Bonus Depreciation History by Year and Presidential Term

To understand the significance of the 2025 reinstatement, here’s a look at how Bonus Depreciation has evolved over the past 25 years:

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Broader Aviation Market Impacts

The restoration of full expensing is already triggering:

• Increased demand in the pre-owned market
  
• Higher aircraft valuations and reduced listing times
  
• OEM and MRO activity, as orders and upgrades accelerate
  
• Expansion by charter and fractional operators, taking advantage of capital savings
  

Unlike many tax incentives, Bonus Depreciation under OBBB applies to pre-owned jets, creating opportunities for buyers who want to avoid manufacturer wait times or reduce upfront investment.

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Compliance Still Critical

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To qualify for Bonus Depreciation:

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• Aircraft must be used more than 50% for business
  
• Must be placed in service after Jan. 20, 2025
  
• Must meet MACRS depreciation eligibility
  
• Must not have been previously depreciated by the current owner

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