The National Business Aviation Association (NBAA) has provided members with a resource offering expert analysis of a policy for immediate expensing, also known as bonus depreciation, on factory-new and used aircraft. This follows recent congressional budget legislation that permanently reinstated full and immediate expensing for purchases of factory-new and preowned aircraft acquired and placed in service on or after 20 January 2025.

The summary, co-authored by NBAA Tax Committee members Dan Feldman and David Shannon, covers key considerations and practical applications. NBAA says the details are important, particularly for those who purchased aircraft before the 20 January effective date but are seeking 100 per cent immediate expensing.

“Immediate expensing has proven effective for helping companies obtain a key competitive asset,” says NBAA president and CEO Ed Bolen. “At the same time, it is essential for purchasers to fully understand the implications of the policy, especially for companies that are now taking delivery of aircraft ordered prior to 20 January. This new resource, being offered by NBAA exclusively to members, provides timely, authoritative guidance on applying the policy to the purchase of an aircraft in full compliance with applicable laws and regulations.”