legal

NAFA member Soar Aviation Law shares their latest article on the arrival of the 4th quarter rush.

Historically, the fourth quarter has been the busiest period for aircraft transactions. However, 2025 is proving to be an exception. The surge in activity has begun unusually early, with August already showing signs of the traditional fourth-quarter rush. The shift is not coincidental – it is the result of several converging factors that have created a sense of urgency among buyers. Chief among these are the reinstatement of 100% bonus depreciation under the One Big Beautiful Bill Act (OBBBA), labor shortages affecting inspection availability, and ongoing uncertainty surrounding aircraft tariffs.

The OBBBA permanently reinstates 100% bonus depreciation for qualified property placed into service after January 19, 2025 under Section 168(k). This applies to new and pre-owned aircraft, provided they are predominantly used in the United States for qualified business purposes. It is important when establishing the aircraft ownership and operating structure to avoid related party leases or personal use, which can limit qualified business use. This means businesses can deduct the entire purchase price of an eligible aircraft in the year it is placed into service.

Read full article here

This article was originally published by Soar Aviation Law in August 2025. 

This webinar covers the basic rules for importing aircraft through U.S. Customs and related tariff issues. While imports through Customs have long been required and penalties for violations severe, understanding the requirements is especially important today due to the unfamiliar, complicated, and evolving tariff rules that now apply to aircraft imports.

Key insights from the discussion included:

Don’t be fooled by these Myths!

• U.S. registered aircraft do not need to be imported through U.S. Customs. WRONG!

• Tariffs don’t apply to U.S. registered aircraft. WRONG!

• Tariffs don't apply to used aircraft. WRONG! 

Important Considerations:

• Do your due diligence.

• Consider possible tariff implications when deciding where you should conduct a pre-buy inspection (PBI) and/or closing since an aircraft arrival in the US, even for a PBI or closing, could constitute an “import” and subject the parties to a tariff.

• Ensure the purchase agreement is clear as to which party is responsible for paying a tariff (if applicable).
 

Summary:

• Consult a knowledgeable professional before moving an aircraft to the U.S. since importation rules are complicated, and misunderstanding tariffs could lead to costly mistakes.

Click here to view full webinar

NAFA member, David G. Mayer with Shackelford, McKinley & Norton, shares his latest blog regarding the FAA's improved privacy issues.

Has privacy around business aircraft been lost or found? Although the FAA is again attempting to enhance privacy in and around aircraft, increasingly sophisticated intrusions, along with attendant risks to safety and security, persist, as does the potential for aircraft damage. This blog discusses how to identify breaches and possible regulatory, legal structuring, and other solutions to achieve the still elusive goal of personal/aircraft privacy. Confidentiality also improves with proper structuring.

The FAA is trying to enhance the privacy around business aircraft registered in the U.S. By limiting access to information about owners of U.S.-registered aircraft, the FAA has somewhat improved privacy, safety, and security, but significant challenges remain across the ownership and transaction experience. These issues extend not only to registered owners but also to lessees and the ultimate beneficial owners (UBOs) who call the shots behind the scenes. 

Consequently, with the focus on owners, UBOs need to understand and insist on protocols that optimize privacy, safety, and security involving their aircraft. Initially, UBOs should deploy measures to achieve privacy through legal ownership structuring, use of regulatory policy tools, and aircraft management.

For situations where the parties require secrecy or identify credible threats of personal injury or physical damage to the aircraft, UBOs may elect to fly on a different aircraft via a jet card, charter, club, fractional share, or other lift.

Read full article here

This article was originally published by David G. Mayer in AIN on July 11, 2025.

NAFA member Amanda Applegate, Founding Partner at Soar Aviation Law, shares the importance of technical representation in aircraft acquisitions.

I have written many times about the importance of assembling the right team when acquiring an aircraft. This team typically includes the buyer, an aircraft broker, escrow agent, lender, aviation attorney, tax advisor, insurance broker, and a management company or flight department. One essential, but sometimes overlooked, member of this team is the technical representative. Too often, the technical representative is not brought in until the pre-purchase inspection. In reality, their role should begin much earlier – at the very start of the acquisition process. A technical expert can provide critical insights throughout the transaction, from market analysis to delivery.

Partnering with a technical representative at the outset allows for a more informed aircraft selection. Working alongside the broker, the technical expert can help evaluate aircraft options – not only based on mission and budget, but also through an early review of aircraft records. This initial technical review helps identify potential performance issues, maintenance concerns, or damage history – factors that should be understood before signing a purchase agreement. If the agreement is signed early, it should allow the buyer to terminate the transaction without penalty after this preliminary document and visual review, should the findings warrant it.

Read full article here

This article was originally published by Soar Aviation Law on June 18, 2025.

NAFA member Gilchrist Aviation Law shares the Aircraft Title Lawyer & Title Company Coalition's joint response to the FAA. 

On May 23, 2025, the Aircraft Title Lawyer & Title Company Coalition (“ATLTCC”) submitted a joint response to the FAA’s request for comment to withhold certain aircraft registration information from public dissemination.  If you are unfamiliar with the FAA’s privacy proposal and the related request for comment, we encourage you to read part one of our “Flying Private” series to learn more about the scope and implications of this new directive.

As expected, the new rule has drawn significant attention from across the aviation industry, with numerous stakeholders weighing in to express their support or concerns. In total, more than 600 comments were submitted during the public comment period, which closed on June 4, 2025.

The ATLTCC is an informal association of aviation title companies and law firms, Gilchrist Aviation Law being a part of this group. Given their proximity to the Mike Monroney Aeronautical Center and the FAA Aircraft Registry in Oklahoma City, these companies play a vital role in the aircraft transaction ecosystem. While the ATLTCC does not regularly meet, the FAA’s introduction of a privacy option for aircraft registration prompted a united response from those most deeply involved in the examination of FAA records.

Read full article here

This article was originally published by Gilchrist Aviation Law on June 10, 2025.

NAFA member David G. Mayer, Partner with Shackelford, McKinley & Norton, discusses ways to buy a plane during tariff uncertainty - but with cash, financing, or leasing?

Buying and financing an aircraft may seem riskier now than in recent memory due to the impact of ever-changing tariffs, recession fears, and geopolitical risks. The sheer lack of clarity and certainty and the undeniable complexity of tariffs appear to be slowing or disrupting aircraft purchase transactions.

Tariffs may raise the purchase price of an aircraft permanently imported into the U.S., including its engines, components, materials, and parts, as I discussed in my recent blog. Under the weight of these factors, what is the path forward in buying, selling, financing, and leasing aircraft consistent with transaction best practices?

Strategy To Purchase an Aircraft Involving Tariffs

As a purchaser, you might focus first on buying an acceptable aircraft considered to be manufactured in the U.S., if available, or an aircraft exempt under the United States-Mexico-Canada Agreement (USMCA), the successor to NAFTA. Even if a seller of an exempt aircraft asks for an elevated price, the asking price might still be less than a similar make and model aircraft subject to a tariff.

Regardless of the origin of an aircraft, it is essential to thoroughly analyze potential tariffs or exemptions and related costs before signing a letter of intent (LOI) to purchase an aircraft, even if you think an exemption applies to the aircraft. Each aircraft will have its own tariff story and exposure.

The LOI, which states the key terms of a purchase, should include provisions on dealing with potential tariffs, including when and where to conduct a pre-buy inspection. For example, the LOI could provide that the pre-buy inspection be conducted in Europe to avoid paying a U.S. tariff unnecessarily if a buyer rejects the airplane in the U.S. and the owner elects to return the aircraft to its base in Europe.

An aircraft purchase agreement (APA) should reflect and expand on the LOI tariff provisions to allow the parties to adjust to evolving tariffs. Consider provisions where the parties might retain mutual rights to terminate a deal (possibly via a specialized form of a “force majeure” clause); create an escrow deposit to fund tariffs; expand tax indemnities to protect against unexpected tariffs, changes in tariff rules, or related claims; and obtain representations and documentation that confirm that tariff exemptions apply. Realistically, the purchaser and seller may need to negotiate terms in their LOI and APA to “share the pain” of tariffs, bonds, and other import costs (possibly in a purchase price adjustment provision).

Strategy To Finance Aircraft Purchases Involving Tariffs

Although financing tariffs dilute the aircraft collateral or residual value coverage for the lender or lessor, that does not mean these financiers cannot or will not make a loan or lease regarding an aircraft, including the aircraft’s tariffs. Competition among financiers practically guarantees this result.

To set the table for negotiations, you should ask your potential lender or lessor how tariffs impact loan or lease pricing and terms, and discuss how to manage finance costs using fixed, floating, and hedging structures, especially if you expect the Federal Reserve to cut or increase interest rates.

You can expect financiers to understand the implications of tariffs on their aircraft loans. Consequently, a financier may feel compelled to reduce the loan or lease term, increase the principal payments during the term, and require loan covenants, including borrower cash flow and net worth coupled with an aircraft’s loan-to-value (LTV) ratio. To put teeth into the LTV, lenders will require a periodic true-up (loan prepayment), if needed, to restore the original LTV and minimize tariff collateral dilution. Depending on the amount of tariffs, financiers may fund them based on a very strong personal guarantee.

Whether the parties import a new or used aircraft, there are three basic ways to acquire an aircraft. You can buy an airplane with cash, use loan proceeds to pay all or a part of the purchase price, or arrange for a third party—a lessor—to purchase and lease an aircraft to you, as the lessee.

Read full article here

This article was originally published by AINsight on May 9, 2025.

Contact Information: 
 

Tracey Cheek  
TLC@NAFA.aero  
405.285.7005 
 

Michael Tentindo 
mtentindo@nixonpeabody.com 
617.345.1203 
nixonpeabody.com 
 

NAFA Welcomes New Member: Nixon Peabody, LLP 
 

Edgewater, MD — April 22, 2025 - The National Aircraft Finance Association (NAFA) is excited to announce that Nixon Peabody LLP, has joined its distinguished network of aviation professionals.  

NAFA President Bryan Byers welcomes Nixon Peabody to the National Aircraft Finance Association. "We are thrilled to have Nixon Peabody join our network, and we anticipate that their engagement and contributions will be immensely valuable in enhancing the knowledge and resources available to all NAFA members." the President noted. 

With their high performance, entrepreneurial spirit, deep industry knowledge, and commitment to service excellence, Nixon Peabody will be a valuable asset to our association. Their expertise in delivering creative solutions for complex legal problems and their focus on building strong, long-lasting relationships aligns perfectly with NAFA's mission to foster collaboration and growth within the aircraft finance industry. We look forward to their participation. 
 

About Nixon Peabody, LLP:
Nixon Peabody has a seasoned team of aviation finance professionals who understand the complexity of the collateral and the legal hurdles involved in each type of financing structure. Our aviation finance team represents clients on transactions in every sector of our industry and we provide an efficient, practical, and results-orientated approach on every transaction that we handle.  Nixon Peabody also has an experienced and deep aviation litigation group. It understands that aviation businesses need advisors who can foresee the regulatory, business, and legal needs of our industry and guide them through NTSB, FAA, and foreign accident investigations, public hearings, and regulatory inquiries with prompt, efficient, and aggressive defenses. Learn more at nixonpeabody.com.  
 

About NAFA:  
The National Aircraft Finance Association (NAFA) is a professional association that has been promoting the general welfare of aircraft finance for more than 50 years. Our network of members is comprised of lenders and product service providers who work together to finance general and business aviation aircraft. NAFA sets the standard for best practices in aviation finance by educating its members with the most up-to-date industry trends and best practices. Government legislation, market influences and industry insights allow member companies to provide the highest quality services the industry has to offer. 

Contact Information: 

Tracey Cheek  
TLC@NAFA.aero  
405.285.7005 
 

Emanuel Anton 
Emanuel@bizjetlaw.com 
303.816.3054 
bizjetlaw.com 

NAFA Welcomes New Member: Bizjet Law 
 

Edgewater, MD — April 15, 2025 - The National Aircraft Finance Association (NAFA) is excited to announce that Bizjet Law has joined its distinguished network of aviation professionals. The firm’s focused experience in business aviation makes it a strategic addition to NAFA’s membership of lenders, lessors, and finance professionals committed to advancing the industry. 

NAFA is confident that BizJet Law will bring valuable insights and expertise to its growing network of aviation professionals. “NAFA members facilitate the financing of general and business aviation aircraft on a global scale,” said Ed Medici, NAFA President. “We welcome and support Bizjet Law’s services that play a role in advancing the interests of NAFA members within the aviation industry.”  

Bizjet Law is a nationally recognized firm with a strong track record representing business aviation clients in complex domestic and cross-border aircraft transactions.  The firm advises borrowers primarily—corporate flight departments, family offices, and individual owners—on tax strategy, regulatory compliance, and financing structures, including fleet acquisitions, leasebacks, and multi-jurisdictional syndicated deals.  “Joining NAFA reinforces our commitment to the aviation finance community,” said Emanuel Anton, CEO of Bizjet Law. “We’re not just tax and legal advisors—we’re deal closers. We’re committed to helping clients structure intelligently, move quickly, and close with confidence.” 
 

About Bizjet Law: 

Bizjet Law combines transactional sophistication with deep regulatory insight to support clients who own, operate, or rely on turbine aircraft. The firm works alongside aircraft lenders, lessors, brokers, owners, and operators to deliver intended results. From federal and state tax planning to deal closings, the firm delivers clarity, efficiency, and confidence, acting as a strategic partner dedicated to achieving optimal outcomes. Learn more at https://bizjetlaw.com.  
 

About NAFA:  

The National Aircraft Finance Association (NAFA) is a professional association that has been promoting the general welfare of aircraft finance for more than 50 years. Our network of members is comprised of lenders and product service providers who work together to finance general and business aviation aircraft. NAFA sets the standard for best practices in aviation finance by educating its members with the most up-to-date industry trends and best practices. Government legislation, market influences and industry insights allow member companies to provide the highest quality services the industry has to offer. 

On March 28, 2025, the Federal Aviation Administration (FAA) published a notice confirming it is implementing new privacy protections for aircraft owners. We summarized the notice in our article, FAA Implements New Privacy Protections for Aircraft Owners. On April 3, 2025, the FAA published in the Federal Register a Request for Comment To Withhold Certain Aircraft Registration Information From Public Dissemination (Request for Comment) confirming it is "seeking comment on the impacts of removing certain aircraft registration data from public display on the FAA website, including through current search functions and published reports." The deadline for responding to the Request for Comment is on or before May 5, 2025. The Request for Comment summarizes the data to be removed "from FAA Websites": (A) the mailing address or registration address of the registered owner(s); (B) an electronic address (including an email address) of a registered owner(s); (C) the telephone number of a registered owner(s); and (D) the name(s) of the aircraft owner(s).

Interestingly, the Request for Comment broadly indicates this information may be removed for any registered owner, but the specific language in 49 USC § 44114(b) seems to limit privacy concern to only "individuals." In addition, the Request for Comment confirms the FAA is specifically seeking the following input:

1. How often do people or organizations access or use registered owner information, and how is this information used?

2. What would be the impact on privacy, safety, commerce, and accessibility of information if the identified categories of registered owner information are removed from public availability?

3. How would the removal of such information affect the ability of stakeholders to perform necessary functions, such as maintenance, safety checks, and regulatory compliance?

4. How should FAA implement the removal of identified categories of registered owner information from public availability?

5. What would be the impact if the FAA removed such information for private aircraft owners categorically and permitted such owners to request copies of their information rather than removing such information only upon an individual request?

6. What additional aircraft registration data should be removed from FAA websites?

The Request for Comment is a positive development for the aircraft industry. The Request for Comment indicates the FAA recognizes aircraft privacy issues are complex and must be balanced with other reasons parties are required to submit documents to the FAA Aircraft Registry (Registry). In addition, the Request for Comment seems to indicate the information is to be removed from FAA websites, but not necessarily from public review at the FAA Public Documents Room. Lastly, it gives the industry an opportunity to provide comments, solutions or concerns.

Read full article here

This article was originally published by Scott McCreary, Vice President at McAfee & Taft on April 7, 2025.

For decades, I have been concerned about the fact that we have an owner-based aircraft registry system in the United States as it is too easy to learn who owns an aircraft and subsequently track it. I was always concerned it would take a tragic event before any changes were made. However, I was encouraged when the Federal Aviation Administration (FAA) Reauthorization Act of 2024 mandated changes to allow for data privacy. The implementation of the mandated changes started on March 28, 2025.

On March 28, 2025, the FAA provided notice that it had implemented Section 803 (Data Privacy) of the FAA Reauthorization Act of 2024 through changes made in the Civil Aviation Registry Electronic Services (CARES). Private aircraft owners can now electronically request that the FAA withhold their private aircraft registration information from public view on public FAA sources and websites for noncommercial flights. This private information includes name, address, email address and telephone number that are usually included on the aircraft registration application.

To complete this request, aircraft owners will need to establish an account on the CARES website. The website is https://cares.faa.gov/home. On the home screen there is an orange banner that describes the new privacy feature and step-by-step instructions are available.

Read full article here

This article by Amanda Applegate was originally published by Soar Aviation Law.

Dry lease of a business aircraft provides plenty of flexibility but needs to be properly thought through. Gerrard Cowan seeks industry insights into some of the often-overlooked challenges of the arrangement.

Dry leases are a popular choice for business aircraft operators, enabling access to all the benefits of an aircraft without having to acquire the platform. However, they come with unique demands, including a need to source the crew.

In a dry lease, the operator avoids having an aircraft on their balance sheet, along with the capital expenditure involved. However, they must source the crew, fuel, etc., themselves. In the US, dry leases are covered by Part 91 regulations, whereas a ‘wet’ lease arrangement, with the lessor also providing the crew etc., must be a charter arrangement operated under Part 135.

Typically, a dry lease is arranged between owners and their respective companies or close associates, explains Kevin McCutcheon, Founder, President & CEO of Flight Solutions.

“Furthermore, operational control considerations must be carefully reviewed to remain within the FAA and IRS regulations and to ensure proper insurance coverage is in place.”

Dry leasing an aircraft – especially a jet – can pose several unique challenges, according to McCutcheon. For example, securing a qualified flight crew is naturally a priority, and properly screening the right individuals can be challenging.

One option is to use the flight crew that currently flies the aircraft for the owner under a ‘side arrangement’. But this presents potential difficulties, setting the owner up for scrutiny from the authorities because “the lessee under a dry lease must have command and control over their own flights and specifically the flight crew,” McCutcheon notes.

Dry leases are usually low utilization arrangements, he adds, so it can be hard to justify a full-time flight crew. A dry lessee typically hires contractors at a daily rate to operate the aircraft.

“The arrangement must clearly show that the lessee and not the lessor is expressing operational control of its flights,” he adds. “The owner of the aircraft must remain removed from helping to schedule or provide flight crew.

This requires the lessee to have operational knowledge and understanding of the regulations to properly express their ‘operational control’ during dry lease flights.”

One area that is often overlooked is the need for dry lease operators to obtain approvals under ICAO and other licensing and navigation permits when flying internationally. Other areas include aircraft insurance requirements, including the need to ensure that underwriters are involved in all discussions.

“Dry lessees must understand that the operators are responsible, not the aircraft owner. This process can be time consuming and daunting for the uneducated,” says McCutcheon.

Aircraft Dry Lease: Liability Considerations

Dry leases can either cover exclusive use or be non- exclusive, says Keeley Burgess, an attorney at Aviation Legal Group. Each brings its own advantages and disadvantages depending on your position.

“From an owner’s perspective, multiple non-exclusive dry lease agreements can be advantageous because the leases will allow for multiple entities to enjoy operation of the aircraft,” she notes.

“From a lessee’s perspective, an exclusive use dry lease may be preferable because the lessee does not have to coordinate scheduling their use and maintenance of the aircraft with other parties.”

Read full article here.

This article was originally published by AvBuyer on March 20, 2025.

NAFA member, David G. Mayer, Partner with Shackelford, McKinley & Norton, discusses how the ever-shifting U.S. strategy adds complexity and costs to business aircraft transactions.

The new or threatened tariffs announced by the Trump Administration and other countries may cost more than you realize when buying and financing private aircraft. The on-again, off-again U.S. tariff activity has roiled the U.S. financial markets, triggered retaliatory tariffs, alarmed aircraft stakeholders, and created wide uncertainty in global trade.

The Trump Administration has imposed, modified, and/or delayed the imposition of tariffs on specific countries to achieve certain foreign policy and economic goals. To stop massive shipments of fentanyl into the U.S., the Administration has imposed tariffs on Mexico and Canada and a 20 percent tariff on Chinese-origin goods to make U.S.-origin products more price competitive with cheaper non-U.S. origin metal sellers. This tariff may affect the metals used by aircraft manufacturers (OEMs), repair facilities, and their suppliers.

Transacting Steps and Process

Purchasing an aircraft without addressing tariffs is not an option. It is imperative to rely on customs brokers, lawyers and other import/export experts in deal teams to conduct a real-time analysis of potential tariffs, including direct and retaliatory tariffs from the U.S., Canada, or Mexico.

Their objectives should include determining the application, percentage, and effective dates of the tariffs on the aircraft being purchased. Second, they should calculate the tariff based on the purchase price if tariffs apply. The analysis should consider such tariff-based factors as the country of origin or transformation of an aircraft or specific product codes under the U.S. Harmonized Tariff Schedule (HTSUS). HTSUS is the primary resource for identifying tariff rates on aircraft imported into the United States. Third, they should try to structure the importation timing and terms to minimize the tariff cost.

As a byproduct of tariffs, the parties should brace for higher transaction costs and processing delays from the pre-tariff duty-free norm. The deal team will also negotiate purchase or financing documentation and interact with U.S. Customs and Border Protection officials.

Read full article here

This article was originally published by AIN on March 14, 2025.

Contact Information: 
 

Tracey Cheek  
TLC@NAFA.aero  
405.285.7005 
 

Drew Coats 
281.681.8239 
coats@coatsaviationlaw.com 
www.coatsaviationlaw.com  
 

NAFA Welcomes New Member: Coats Aviation Law 

Edgewater, MD — March 27, 2025 - The National Aircraft Finance Association (NAFA) is excited to announce that Coats Aviation Law has joined its distinguished network of aviation professionals. 

 “NAFA members facilitate the financing of general and business aviation aircraft on a global scale,” said Ed Medici, NAFA President. “We welcome and support Coats Aviation Law’s services that play a role in advancing the interests of NAFA members within the aviation industry.”  

Specializing in aviation transactions, litigation, and regulatory compliance, Coats Aviation Law provides expert legal counsel to aircraft owners, operators, pilots, and aviation businesses. Their transactional practice covers aircraft acquisitions, financing, co-ownership structuring, and risk mitigation, while their litigation expertise includes commercial disputes, aviation tort defense, and FAA enforcement matters. Additionally, they offer advocacy solutions across public, media, and governmental forums. With a comprehensive approach to aviation law, Coats Aviation Law is a valuable addition to the NAFA community. 

About Coats Aviation Law: 
Coats Aviation Law represents aircraft owners, operators, aircraft lenders, aviation businesses and service providers, and pilots in aviation transactions, disputes, regulatory compliance, risk management, and tax mitigation matters. We also provide advocacy solutions in a variety of public, media, and governmental forums. 

To learn more, visit coatsaviationlaw.com.   

About NAFA:  
The National Aircraft Finance Association (NAFA) is a professional association that has been promoting the general welfare of aircraft finance for more than 50 years. Our network of members is comprised of lenders and product service providers who work together to finance general and business aviation aircraft. NAFA sets the standard for best practices in aviation finance by educating its members with the most up-to-date industry trends and best practices. Government legislation, market influences and industry insights allow member companies to provide the highest quality services the industry has to offer. 

Many purchasers and financiers fail to appreciate the implication of how an aircraft will be operated post closing, whether under FAR Part 135 or Part 91, during the sales process. Parts 135 & 91 apply to operations of aircraft and the particulars of these parts will govern not only how, when, and where the aircraft can be operated post-closing, but also what equipment, certification and licensing the aircraft and crew will need as well as the availability of aircraft and engine support programs. In addition to the FARs, depending on the proposed operation, the economic aviation regulations of DOT may also need to be considered.

From on-demand air taxi operators to private non-commercial operators, operational issues can be complex and can create challenges for structural arrangements that purchasers as well as financiers may not anticipate. This may be particularly true if the intent is for operation of the aircraft not only domestically, but also internationally. While international operations may present unique challenges, such challenges can be overcome without jeopardizing the value or security of the aircraft.

In this webinar, we discussed:

• What lessors/financiers need to know about commercial/non-commercial and domestic/international operations and the implications of these operations on leases and security interests.
• What questions transaction attorneys should consider during the sale/purchase process in counseling purchasers and financiers regarding the intended post-closing operation of an aircraft.
• What insurance brokers need to know for proper underwriting and to ensure proper coverage based upon the post-closing operations of the aircraft and equipment, certification and licensing required for aircraft, operators, and crew.

View the Recording
 

This NAFA webinar originally aired on March 12, 2025.

What can buyers of business and private aircraft in the USA hope for in 2025 in terms of potential tax benefits from their purchases? Experts share their insights with Chris Kjelgaard.

Aircraft buyers based in the US who plan to use their new and used planes primarily for business purposes have entered 2025 with reasons for hope that the year might prove favorable in terms of the tax treatment the US Federal Government affords their newly acquired aviation assets.

That hope is new, and it follows a year in which the tax picture at both US federal and state level for aircraft buyers began to show early signs of darkening.

In 2024, under what proved to be the outgoing Biden Administration, the US Internal Revenue Service (IRS) pronounced that it would direct greater scrutiny toward finding out to what extent owners were using their aircraft for business purposes – as legislation conferring tax benefits on purchases of aviation assets meant them to do.

The IRS further indicated it would put that scrutiny into practical effect by conducting increased numbers of tax audits on owners of new and used business and private aircraft.

That planned intensification of IRS focus would mean those owners who couldn’t document clearly that at least 50% of the flying they conducted with their aircraft during the year would be ineligible for the bonus depreciation schedule available, under the 2017 Tax Cuts and Jobs Act.

As matters stand today, the act’s provisions for bonus depreciation on aircraft and various other purchased assets are scheduled to end in 2027.

But the dawning of 2025 – and with it the assumption of power by the Trump Administration – has brought what is widely expected to be a dramatic sea change in the US Government’s regulatory ethos as it affects many areas of business. That sea change is expected to include a relaxation of tax legislation, and perhaps a contraction in the size and oversight power of the IRS.

As of this early-February writing, it remains to be seen to what extent the Trump Administration will honor the political promises the incoming Administration made during last year’s Presidential campaigning process.

Read full article here

This article was originally published by AvBuyer on March 5, 2025.