At Savoya, we work with individuals who move the world forward: private jet owners, C-suite leaders, asset managers, and elite advisors. For our clients, every decision—especially those tied to travel and investment—is intentional and grounded in efficiency. That includes staying ahead of changes to tax policy that can impact how and when they invest in capital assets like private aircraft.
One of the most powerful and long-standing tools in the tax code for business aviation, bonus depreciation, has been restored to its full benefit in 2025. Recent legislation reinstated 100% first-year depreciation for qualifying property, including private jets, placed into service after January 19, 2025. This allows eligible buyers to deduct the full cost of a qualifying aircraft in the same year it’s placed into service.
If you’ve been tracking the depreciation schedule, you know it’s been tapering off over the past few years:
Now, with this change, the full 100% deduction is back. The update applies to both new and qualifying pre-owned aircraft, if IRS requirements are met (e.g., not purchased from a related party and primarily used for business).
To put that in perspective: if you acquire a $12 million jet for business use this year and place it into service by December 31, you could potentially deduct the entire $12 million on your 2025 return. That can make a significant difference in tax exposure and overall investment timing.
It’s important to understand that this isn’t a brand-new incentive. Bonus depreciation has existed in some form for decades, evolving under various tax reforms. This latest update simply restores full expensing, offering jet buyers a renewed opportunity to optimize their purchase.
To take advantage of the current rules this tax year, the aircraft must be:
“Placed into service” means the aircraft must be delivered, registered, and flown for business use before December 31. A signed purchase agreement isn’t enough, and with sourcing, inspections, financing, and registration all requiring lead time—especially in a competitive pre-owned market—buyers should plan accordingly. Additionally, bonus depreciation applies to the full purchase price of a qualifying aircraft, even if it’s financed, allowing buyers to claim the full deduction while preserving cash flow.
Recent legislative changes have reinstated 100% bonus depreciation for qualifying aircraft placed into service under current rules. While the provision is considered in effect for now, tax policy can evolve—and timing remains a critical factor in maximizing its value.
If a jet purchase is part of your plan:
While the tax benefits of private aircraft ownership are significant, they’re just one part of a larger picture. The most effective travel programs maintain consistency across every leg of the journey, starting at departure and continuing through arrival.
For executives and flight departments alike, executive ground transportation is a critical link. Delays, unclear timing, or unreliable service on the ground can quickly disrupt an otherwise seamless experience in the air.
Savoya works with clients to close that gap offering coordinated, professional car service that’s aligned with flight activity in real time. By connecting air and ground through integrated tools and vetted service, travelers stay in motion without added friction. It's a small detail that protects the larger investment in private aviation.
Bonus depreciation is a powerful incentive, but the real value comes when everything works in sync—from your acquisition plan to your compliance strategy and your travel logistics.
With the right structure in place, your travel program can support both financial goals and operational consistency. From acquisition to execution, every piece should work together—and that includes what happens on the ground.
For more executive travel insights, visit savoya.com/blog.
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