Anonymous
7/15/2025, 11:48:26 AM No.1420333
https://www.cnbc.com/2025/07/14/tax-cuts-private-jets-big-beautiful-bill.html
The new federal spending bill is expected to boost sales of private jets, as owners take advantage of faster write-offs of the purchase price.
Jet brokers and advisors said they’ve seen a burst of activity from clients who were holding off on purchases until the bill was signed. Among its many new tax provisions is the reinstatement of “bonus depreciation,” which allows businesses to immediately write off 100% of the purchase price of capital equipment, including private jets.
Individuals, who typically own a jet through their private business or holding company, can now write off the entire cost of a new or used jet in the first year of ownership for any plane placed into service in or after Jan. 19, 2025.
The tax benefit only applies to business jets, not jets used for personal use. It revives a provision of the 2017 tax cuts and replaces the current phased-out depreciation percentages of 60% in 2024 and 40% in 2025.
“We’ve had a number of owners who were looking to upgrade and have been waiting for this,” said Barry Shevlin, CEO of FlyUSA, the aviation solutions company. “And I have at least a half-dozen others who are looking to buy after this was passed.”
The tax stimulus comes at just the right time for the private jet industry, which has seen a slowdown in growth from its feverish pitch in 2020 and 2021. The industry saw a surge in new owners, charter fliers and fractional owners after Covid, but many of the wealthy who bought planes then for the first time have started selling them or moving to fractional ownership due to higher-than expected maintenance and pilot costs.
The number of pre-owned business jets for sale increased to an average monthly rate of over 1,800 in the first half, according to JetNet. That’s up from 1,744 in the first half of 2024. The average time on market has also increased, to 418 days from 386 days, the data firm said.
The new federal spending bill is expected to boost sales of private jets, as owners take advantage of faster write-offs of the purchase price.
Jet brokers and advisors said they’ve seen a burst of activity from clients who were holding off on purchases until the bill was signed. Among its many new tax provisions is the reinstatement of “bonus depreciation,” which allows businesses to immediately write off 100% of the purchase price of capital equipment, including private jets.
Individuals, who typically own a jet through their private business or holding company, can now write off the entire cost of a new or used jet in the first year of ownership for any plane placed into service in or after Jan. 19, 2025.
The tax benefit only applies to business jets, not jets used for personal use. It revives a provision of the 2017 tax cuts and replaces the current phased-out depreciation percentages of 60% in 2024 and 40% in 2025.
“We’ve had a number of owners who were looking to upgrade and have been waiting for this,” said Barry Shevlin, CEO of FlyUSA, the aviation solutions company. “And I have at least a half-dozen others who are looking to buy after this was passed.”
The tax stimulus comes at just the right time for the private jet industry, which has seen a slowdown in growth from its feverish pitch in 2020 and 2021. The industry saw a surge in new owners, charter fliers and fractional owners after Covid, but many of the wealthy who bought planes then for the first time have started selling them or moving to fractional ownership due to higher-than expected maintenance and pilot costs.
The number of pre-owned business jets for sale increased to an average monthly rate of over 1,800 in the first half, according to JetNet. That’s up from 1,744 in the first half of 2024. The average time on market has also increased, to 418 days from 386 days, the data firm said.
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