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The Return of 100% Bonus Depreciation: How 2025 Made Private Aircraft Ownership More Valuable Than Ever [1]

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Date: 2025-07-04 21:44:31+00:00

What Changed in 2025 That Makes Private Aircraft Ownership a Game-Changer?

If someone told you that Uncle Sam might foot the bill for your private jet or turboprop, would you believe them? It sounds like the setup to a late-night infomercial, but in 2025, that pitch isn’t far from reality. With the stroke of a pen and a return to aggressive tax policy, business jet ownership has never looked more fiscally attractive or more fun to explain to your accountant.

On July 2, 2025, President Donald J. Trump signed into law the federal budget bill, officially titled the One Big Beautiful Bill Act (H.R.1). This legislation permanently reinstated 100% bonus depreciation for capital equipment, including business and general aviation aircraft. It was a highly anticipated move that sparked immediate interest and activity across the private aviation industry.

In a landmark move that sent waves across the general aviation industry, Congress passed the 2025 federal budget bill officially titled the One Big Beautiful Bill Act (H.R.1) reinstating permanent 100% bonus depreciation for capital equipment, including private jets. This change, effective for assets placed in service on or after January 19, 2025, allows businesses and individuals to write off the entire cost of a new or used jet in the first year of ownership, provided it’s the buyer’s first use.

This tax incentive not only revives a critical financial lever last seen in full under the 2017 Tax Cuts and Jobs Act but also reverses the phased out depreciation percentages of 60% in 2024 and a now-defunct 40% in 2025. For business aircraft owners, the implications are profound: immediate cost recovery, significant tax deferral, and renewed momentum in aircraft transactions, upgrades, and management strategies.

How Does 100% Bonus Depreciation Work for Aircraft Owners?

Think of it as the VIP lounge of the tax code exclusive, plush, and surprisingly generous. If you’re flying for business and you meet the criteria, the government is essentially saying, “Welcome aboard, your jet is on us… at least for tax purposes.”

Under Internal Revenue Code §168(k), bonus depreciation enables taxpayers to deduct the full purchase price of qualifying business-use property in the year it’s placed in service. In aviation, this means if you buy a $10 million business jet in 2025, and it meets the >50% business-use threshold, you could deduct the entire $10M from your 2025 taxable income.

Whether you’re purchasing factory-new or pre-owned aircraft, the key condition is that it’s the first time the aircraft is used in your trade or business. Buyers who act now stand to save millions in taxes, potentially offsetting their acquisition and financing costs in the first year alone.

What Are the Rules and Pitfalls Around Business Use?

IRS compliance is vital. To qualify:

The aircraft must be used at least 50% for qualified business activities.

Usage must be carefully documented (trip logs, business purposes, etc.).

Personal and entertainment use must be excluded from deductions.

Failing to meet the business-use threshold results in disqualification or recapture of depreciation, which can be both financially and legally burdensome. FlyUSA recommends strict recordkeeping, IRS audit preparedness, and, where appropriate, placing aircraft into charter service under Part 135 to bolster business-use metrics.

How Do Ownership Models Affect Eligibility and Strategy?

Full Owners (Part 91): Enjoy the most direct tax benefits. With 100% depreciation in year one, owners can use bonus depreciation as a tool to reinvest, finance, or expand operations. Fractional and Co-Owners: Eligible if each party uses their share for >50% business travel. FlyUSA’s Partnership Perfected program helps structure these arrangements and ensure each owner’s compliance. Charter and Part 135 Operators: Aircraft used in charter service also qualify, even under the 7-year MACRS life, thanks to the bonus depreciation override. Owners who charter their jets enhance utilization and business-use metrics.

How Does This Affect Jet Cards, Charter Flyers, and Shared Users?

Don’t own a jet yet? That’s okay. Thanks to the bonus depreciation boom, the skies are getting friendlier and busier. It’s like Uber Black, but for altitude lovers with better snacks.

Even non-owners benefit. With the law encouraging more aircraft purchases and entries into charter service, jet card holders and charter flyers may see:

Newer aircraft in circulation

Expanded fleet availability

Better scheduling flexibility

More competitive pricing over time

Programs like FlyUSA’s Ascend Club and Jet Card stand to expand and evolve as more owners enter charter, improving options for casual and supplemental flyers.

Can You Finance a Private Plane and Still Claim Full Depreciation?

Here’s where it gets fun: You don’t have to be a billionaire with a duffel bag of cash. Finance the jet, keep most of your capital, and still deduct like a boss. It’s like using points for first class, only this time it’s tax code magic.

Yes. One of the most powerful strategies involves financing an aircraft but claiming the full deduction.

Example: Finance 80% of a $10M jet ($2M down), but still deduct the full $10M.

That could mean a $3.5M+ tax savings in year one—more than covering your down payment. This tax-leverage combo enables businesses and HNW individuals to optimize liquidity, ROI, and long-term capital strategy.

What Should Buyers Do Now to Capitalize?

Start Early: Aircraft inventory is already tightening. Demand is rising.

Engage Professionals: Work with aviation tax advisors, legal counsel, and experienced acquisition teams like FlyUSA.

Plan Strategically: Consider future usage, resale, and compliance. IRS scrutiny is increasing, so be documentation-ready.

Consider Charter Integration: Adding your plane to Part 135 use helps meet business-use criteria and offset costs.

How FlyUSA Makes the Process Seamless

FlyUSA is uniquely positioned to help clients take full advantage of this new tax environment:

Aircraft Acquisition Assistance: From market search to transaction closing.

Part 91 & Part 135 Management: Full-service operations, compliance, scheduling, crew, and maintenance.

Jet Cards & Ascend Club: Flexible access for non-owners or owner overflow.

Compliance Consulting: Keep you within IRS & FAA regulations while maximizing deductions.

FlyUSA’s integrated approach ensures your ownership is optimized from tax planning through day-to-day operations.

Is This a Short-Term Window or Long-Term Opportunity?

While the law makes 100% depreciation permanent, legislative priorities can change. Political shifts could reintroduce phase-outs, especially as budget deficits return to the spotlight. Acting now ensures you lock in the benefits for 2025, and potentially position for future upgrades with continued depreciation resets.

Why This Matters More Than Ever for Business Travel

In a world where time is money and commercial air travel remains constrained, owning a private jet or plane isn’t just about luxury, it’s a strategic advantage. You reach clients faster, explore new markets more efficiently, and reclaim hours each week for growth.

Add to that a significant tax subsidy, and it’s not just smart. It may be the most cost-effective time ever to fly private.

What’s the Final Word?

If you’re a business owner, investor, family office, or entrepreneur with high taxable income and growing travel needs, 2025 may be your best year ever to own a jet. The tax code is effectively underwriting your investment, but only if you execute it smartly, compliantly, and in alignment with your business goals.

Want to Learn More?

To discover how aircraft ownership, management, and FlyUSA’s tailored programs can work for your personal or corporate goals, contact FlyUSA. Our team is ready to help you navigate this new opportunity with clarity, strategy, and confidence.

Request our Full Guide:

Ready to dive deeper into how 100% bonus depreciation can work for your tax and ownership strategy? request our comprehensive 2025 Bonus Depreciation Guide, crafted by the FlyUSA team. It’s packed with examples, ownership model comparisons, compliance tips, and strategic insights to help you make informed, profitable decisions.

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[1] Url: https://flyusa.com/the-return-of-100-bonus-depreciation-how-2025-made-private-jet-ownership-more-valuable-than-ever/

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