Bonus depreciation
Bonus depreciation is a US tax provision that lets a business deduct a large share of an aircraft's cost in the year it is placed in service rather than over the normal recovery period. The 2017 tax law allowed 100% for new and used aircraft, which was phasing down to 40% for 2025 before legislation in 2025 restored 100% bonus depreciation for property acquired after 19 January 2025. The catch is that the aircraft must be used predominantly for qualified business purposes, personal use is recaptured, and hobby-loss and passive-activity rules apply. It changes the timing of deductions rather than the total, but for a profitable company buying a $20 million jet the cash-flow effect can be enormous.