NAFA member FLYING Finance shares how you can take full advantage of the benefits of the new rules.
It’s hard to overstate how impactful bonus depreciation has been to private aviation.
The fiscal policy is now woven into the framework of U.S. tax legislation, and it’s become a pivotal stimulus in the aviation industry, particularly the private aircraft market. Through a series of legislative changes over the years, bonus depreciation has been instrumental in stimulating growth and revitalizing ways in which aircraft manufacturers can market and reach new consumers.
Bonus depreciation, essentially, is a strategic tax incentive designed to foster business investments. It first became a mainstream fiscal tactic in the aftermath of the 9/11 attacks and the economic downturn of the early 2000s.
President George W. Bush’s administration introduced the policy through the Job Creation and Worker Assistance Act of 2002 that allowed for a 30 percent deduction on capital asset expenses. By 2003, this was increased to 50 percent, catalyzing business investments across various sectors, including aviation.
However, this provision oscillated through various phases, which was an indirect reflection of economic stability and legislative goals. After a temporary lapse from 2004 to 2007, the financial crisis of 2008 prompted its reactivation at 50 percent to stimulate economic recovery under the Economic Stimulus Act of 2008 and the American Recovery and Reinvestment Act.
President Barack Obama notably raised the rate to a full 100 percent in 2011, which made the immediate ability to expense private jet purchases for business use highly attractive and significantly impacted sectors like aviation.
This article was originally published by FLYING Finance on October 4, 2025.