Maximizing Efficiency and Tax Savings with General Aviation and Bonus Depreciation

The Common Business Travel Challenge
Picture this: You leave home on a Sunday afternoon, drive over an hour to a major airport, and arrive two hours early for your commercial flight. After a layover and a connecting flight, you finally reach your destination late Sunday evening, exhausted, for a two-hour business meeting on Monday at 11:00 AM. Post-meeting, you repeat the grueling journey—another layover, another long drive—and arrive home around midnight on Monday, after your kids are already
asleep.
Now, consider a smarter alternative: You leave home Monday morning at 7:00 AM, drive just ten minutes to your local airport, and board your aircraft, piloted by a professional. During the two-hour flight, you refine your PowerPoint presentation in a quiet, comfortable cabin. After your meeting, you’re back on the plane and home by 5:30 PM, in time for your child’s Little League game or dance recital.
Why General Aviation?
Does constant business travel erode your key employees’ quality of life? Are you frequently traveling to smaller cities like Jasper, Indiana, or Johnson City, Kansas, where commercial flights are inconvenient or nonexistent? Are you concerned about the health risks of crowded commercial flights in the current environment? A general aviation aircraft can address these challenges, offering flexibility, efficiency, and peace of mind—while also unlocking significant tax advantages.
Understanding Bonus Depreciation
Bonus depreciation is a powerful tax incentive provided by the U.S. tax code that allows businesses to immediately deduct a substantial portion of the cost of qualifying assets, such as a business aircraft, in the year of purchase. This provision is designed to encourage businesses to invest in capital assets by reducing their taxable income, thereby lowering their tax liability.
The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, has made
significant enhancements to bonus depreciation, reinstating and making permanent 100% bonus depreciation for qualified property, including business aircraft, acquired and placed in service after January 19, 2025. This means businesses can deduct the entire cost of a qualifying asset in the year it is placed into service, provided it is used primarily for business purposes. For example, if your company purchases a $1,000,000 business aircraft and you’re in a 45% marginal tax bracket, you could reduce your income tax liability by $450,000 in the year of
purchase. This immediate tax savings can significantly offset the cost of acquiring the aircraft, improving cash flow and making private aviation a financially attractive option.

How Bonus Depreciation Works Under the OBBBA
 Eligibility: To qualify for bonus depreciation, the aircraft must be used predominantly (at
least 50%) for business purposes. This includes flights for client meetings, site visits, or
transporting employees and equipment for work-related activities.
 Permanent 100% Deduction: The OBBBA restores and makes permanent the ability to deduct 100% of the cost of qualifying assets in the year they are placed into service, reversing the previous phase-down schedule, providing long-term certainty for businesses planning capital investments.
 Tax Savings: The deduction reduces your taxable income, directly lowering your tax bill.
 Special Provision for Aircraft: The OBBBA extends the 100% bonus depreciation to certain aircraft with longer production periods, allowing deductions for qualifying aircraft placed in service before January 1, 2031, provided they meet specific criteria.
Is Bonus Depreciation Right for Your Business?
The OBBBA’s reinstatement of permanent 100% bonus depreciation makes 2025 an ideal time to consider investing in a business aircraft. This tax incentive, combined with the operational benefits of general aviation, offers a compelling case for businesses looking to optimize travel and improve their financial strategy. However, to maximize these benefits, consult with a tax professional to ensure the aircraft qualifies for bonus depreciation and aligns with your business’s financial goals, especially in light of the OBBBA’s specific requirements for qualified
property.