As you know, the One Big Beautiful Bill Act (OBBBA) was signed into law on July 4th, 2025. CPAs across the country, myself included, have speculated about this legislation for months, and now we finally have our answers.
I’ve since worked my way through the entire bill, which is jam-packed with changes. They cover updates to SNAP programs, the Armed Forces, space programs, energy sources, student funding and homeland security. However, the largest section of OBBBA focuses on taxes.
The 330+-page bill introduces many updates and changes to the current tax law. While it adds new concepts, it also extends several provisions from the 2018 Tax Cuts and Jobs Act (TCJA) provisions that were set to expire this year.
One of the most notable is 100% bonus depreciation.
This highly anticipated addition to the OBBBA was a win for businesses and a valuable opportunity to defer taxes for prospective aircraft owners who use their aircraft for business.
I’ve written about bonus depreciation before and the qualifications for this deduction, so I will not go into detail here.
That said, I do want to highlight a few key points for the new laws surrounding 100% bonus depreciation:
- 100% bonus depreciation applies to business assets acquired after January 19, 2025.
- If you had a signed contract prior to this date and took (or are taking) delivery after this date, the rules are a bit more complicated. I encourage you to consult your tax advisor.
- You may opt into the previously available 40% bonus depreciation for 2025 instead of 100%.
As with any tax deduction or depreciable asset, the aircraft must be used for business purposes and meet certain criteria to qualify. If you plan to purchase an aircraft or have acquired one this year, be sure to discuss your options with your aviation tax advisor.