Independence Day legislation includes permanent full expensing for new and used aircraft in business operations. (07/09/2025)
President Donald Trump signed into law a sweeping tax-and-spending bill on July 4 that reinstates 100% bonus depreciation for qualified property, including business aircraft.
The provision, effective for property placed in service on or after January 19, 2025, restores full expensing for both new and pre-owned aircraft used in business under IRS guidelines.
The change comes as part of the broader “One Big Beautiful Bill Act.” a multitrillion-dollar legislative package passed by Congress in late June. The bonus depreciation measure reverses the phaseout schedule established in the 2017 Tax Cuts and Jobs Act, which had reduced bonus depreciation to 60 percent in 2024 and was set to decline further in 2025.
Under the newly enacted provision, businesses purchasing eligible aircraft may deduct 100 percent of the acquisition cost in the year the aircraft is placed in service, subject to existing IRS requirements for business use and other qualifications. The tax benefit applies to both factory-new aircraft and used models that meet the criteria.