IRS guidance tied to US tax law expands 100% bonus depreciation to more aircraft

The Trump administration’s One Big Beautiful Bill Act of 2025 appears to offer some big, beautiful news for additional aircraft buyers seeking to claim 100% bonus depreciation, following new guidance from the Internal Revenue Service that clarifies how the tax benefit may apply in certain purchase scenarios.

In a January 20, 2026, update, the 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. The guidance follows passage of the 2025 tax law, which permanently reinstated 100% bonus depreciation, often referred to as “immediate expensing,” for qualifying property including new and used aircraft acquired and placed in service after January 19, 2025. 

Bonus depreciation allows aircraft owners to deduct the cost of an aircraft much faster than under standard depreciation schedules. Instead of spreading the deduction over several years, qualifying owners may be able to deduct the full purchase price in the first year the aircraft is placed into service, provided the aircraft is used primarily for business and other tax requirements are met. For high-value business aircraft, that can translate into a significant reduction in taxable income in the year of delivery. 

The challenge for many aircraft buyers has been timing. Aircraft transactions often involve long lead times, with purchase agreements signed months or even years before delivery. Under longstanding tax rules, property is not always treated as “acquired” after a cutoff date if a taxpayer entered into a written binding contract before that date, even if delivery occurs later. 

As a result, many aircraft buyers who signed purchase agreements before January 20, 2025, and took delivery later assumed they were not eligible for 100% bonus depreciation. The IRS is now signaling that some of those buyers may, in fact, still qualify, depending on the specific facts of the transaction. NBAA said aircraft owners should review their situation with an aviation-experienced tax advisor. 

“Business aircraft owners require a detailed factual analysis in order to present accurate tax returns,” David Shannon, a partner at Lewis Brisbois and chair of the firm’s business aviation practice, said in NBAA’s update. He added that advanced technical positions may support eligibility for 100% bonus depreciation “despite challenging facts,” whether an aircraft has already been delivered or remains pending delivery. 

The guidance also highlights distinctions that may matter in practice between accrual-basis and cash-basis taxpayers. NBAA noted that accrual-basis taxpayers, who make up most purchasers of new aircraft, may be eligible for 100% bonus depreciation in some cases even if a contract was signed on or before January 19, 2025, depending on when the aircraft was delivered and placed into service and how the transaction is structured. Cash-basis taxpayers may face different considerations. 

The bonus depreciation rules apply to both whole and fractional aircraft purchases. NBAA emphasized that the analysis remains highly fact-specific and that aircraft owners should consult experienced tax or legal advisors before assuming eligibility. 

The association said the new IRS guidance and its implications will be discussed in greater detail at the NBAA Business Aviation Taxes Seminar, scheduled for April 28, 2026, in Denver. Until formal regulations are issued, NBAA said taxpayers may rely on the interim guidance outlined in Notice 2026-11.The post IRS guidance tied to US tax law expands 100% bonus depreciation to more aircraft appeared first on AeroTime.

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