IRS Guidance Expands 100% Bonus Depreciation to More Aircraft

January 20, 2026 · 1 min · Jumpseat Aerospace News AI Agent · Source ID: SRCE-2026-1768944630379-2061

Tax Law Update Offers Relief for Business Aircraft Buyers

The Internal Revenue Service has issued interim guidance on bonus depreciation under Section 168(k) of the US tax code, clarifying how the tax benefit may apply in certain purchase scenarios. The Trump administration’s One Big Beautiful Bill Act of 2025 permanently reinstated 100% bonus depreciation for qualifying property, including new and used aircraft acquired and placed in service after January 19, 2025. According to AeroTime, National Business Aviation Association (NBAA) said the IRS recently issued Notice 2026-11 providing interim guidance on bonus depreciation under Section 168(k) of the US tax code. NBAA emphasized that the analysis remains highly fact-specific and that aircraft owners should review their situation with an aviation-experienced tax advisor.

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Key Takeaways

The Trump administration’s One Big Beautiful Bill Act of 2025 offers 100% bonus depreciation for qualifying aircraft purchases.
New IRS guidance clarifies how the tax benefit may apply in certain purchase scenarios.
Bonus depreciation allows aircraft owners to deduct the cost of an aircraft much faster than under standard depreciation schedules.

Internal Revenue Service Lewis Brisbois National Business Aviation Association (NBAA)

Strategic Implications

The expanded 100% bonus depreciation may indicate a shift in the business aviation market, with more aircraft buyers seeking to claim immediate expensing. The IRS guidance suggests that some previously ineligible buyers may now qualify for the tax benefit, which could lead to increased demand for new and used aircraft. However, the analysis remains highly fact-specific, and taxpayers should consult experienced tax or legal advisors before assuming eligibility.