On Jan 14, 2026, the IRS released Notice 2026-11, which provides additional guidance on the 100% bonus depreciation that was brought back by the One, Big, Beautiful Bill (OBBB). In this case, no news is good news. Although the notice includes clarifying language for some specific assets, like sound recording equipment and specified plants, the rules related to aircraft remain in line with our interpretations from the original bill with no surprises.
To recap the OBBB and the depreciation allowed for assets acquired after January 19, 2025, we have the following: Aircraft that meet certain criteria for MARCS depreciation may be eligible to write off the full cost of the aircraft in the year it is placed in service – known as 100% bonus depreciation.
Taxpayers may elect to use the phase-down depreciation rates that were previously provided in the Tax Cuts and Jobs Act for aircraft placed in service in 2025, allowing for either 40% or 60% bonus depreciation.
Keep in mind, bonus depreciation is not automatic and comes with a number of
conditions that must be met; and even if the aircraft qualifies for bonus depreciation, the deduction will be limited if there is personal use of the aircraft in the year it is placed in service. The rules become even more complicated if you had a contract to purchase an aircraft before January 19, 2025, and it was placed in service on or after that date.
If you are going to purchase an aircraft, and bonus depreciation is important to your tax planning, you should consult an aviation tax advisor early in the process to make sure that the conditions are met. If you have already purchased an aircraft in 2025 or 2026, make sure that you carefully review the rules before taking depreciation on your tax return.