NBAA Member Resource Advises on Immediate Expensing for Aircraft Purchase

The National Business Aviation Association (NBAA) has published a new, member-only resource providing expert analysis about an NBAA-backed policy for immediate expensing (also known as bonus depreciation) on factory-new and used aircraft contained in comprehensive congressional budget legislation recently enacted into law.

The new law includes a permanent reinstatement of full and immediate expensing on purchases of factory-new and preowned aircraft acquired and placed in service on or after Jan. 20, 2025.

That said, it is important to understand the details involved in applying the policy to an aircraft purchase. For example, there are very specific considerations for those who purchase an aircraft prior to the policy’s effective date of Jan. 20, 2025, to claim 100% immediate expensing on the purchase.

The new summary, coauthored by NBAA Tax Committee members Dan Feldman and David Shannon, unpacks the key considerations and practical applications for applying the immediate-expensing policy.

“Immediate expensing has proven effective for helping companies obtain a key competitive asset,” said 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 that were ordered prior to Jan. 20.

“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,” added Bolen.