BACKOctober 2, 2025
Bonus Depreciation – Shaping the Economics of Aircraft Ownership
The acquisition of a business aircraft represents more than a transportation solution, it is a long-term strategic investment in efficiency, flexibility, and control. While operational capabilities and mission requirements often drive the decision, financial considerations are equally significant. Among these, bonus depreciation remains one of the impactful factors shaping the economics of aircraft ownership.
How Does This Affect Me?
Bonus depreciation provides eligible purchasers with the ability to accelerate depreciation deductions on qualified assets. Rather than allocating the cost of an aircraft over many years, owners may deduct a substantial portion of the acquisition cost in the year the aircraft is placed into service. For organizations with significant taxable income, this mechanism offers immediate financial relief, effectively reducing the after-tax cost of ownership from the outset.
The influence of bonus depreciation extends beyond the initial purchase. Aircraft enhancements, such as avionics upgrades, performance modifications, or interior refurbishments, may also qualify. In these cases, the incentive encourages reinvestment in safety, operational efficiency, and passenger experience. Improvements that might otherwise require extended financial justification can yield faster returns under accelerated depreciation.
Strategic planning is essential to maximize the benefit of bonus depreciation. Eligibility requires that an aircraft be placed into service within defined timeframes, underscoring the need for alignment between acquisition, financing, inspection, and operational readiness. Delays in these processes may result in the loss of the intended benefit, emphasizing the importance of foresight and coordination.
Incorporating Tax Incentives into a Broader Strategy
Bonus depreciation should be evaluated as part of a broader ownership strategy rather than in isolation. While it may accelerate the decision to acquire or upgrade, owners must also consider lifecycle costs, mission profiles, regulatory compliance, and long-term business objectives. When integrated thoughtfully, bonus depreciation becomes a valuable tool to enhance financial efficiency without compromising operational priorities.
For 80 years, George J. Priester Aviation has advised clients on the complexities of aircraft ownership. Tax incentives such as bonus depreciation can provide meaningful advantages, but their true value is realized only when they are incorporated into a comprehensive ownership plan. By working in concert with experienced advisors, owners can align aviation assets with broader business goals, ensuring that decisions are both financially sound and operationally sustainable.
Aircraft ownership is ultimately defined by more than utility or convenience; it is a strategic investment in capability and time. Bonus depreciation does not alter the fundamental reasons from flying privately, but it does influence the financial framework in which those decisions are made. When approached with careful planning and professional guidance, it can significantly enhance the long-term value of an aviation investment.
To understand how bonus depreciation and other tax incentives can shape your aircraft ownership strategy, it is essential to work with experience advisors who can align financial considerations with your operational goals. To learn how Priester Aviation can support your ownership, contact Greg Cummings, Vice President of Business Development & Management Sales.
+1 303 594 2534 | greg.cummings@gjpaviation.com