When we published our ‘State of Business Aviation 2025’ eBook recently, one theme stood out: the need for adaptive strategy. The Trump administration’s latest policy move reaffirms that momentum – its unpredictability continues to reshape the market. In this article, written by Ian Petts, we build on that foundation and explore what this new legislation means for anyone looking to buy, sell, or own a business aircraft or high value asset.

The U.S. Congress has passed President Trumps ‘One Big Beautiful Bill Act – OBBBA’, a sweeping tax reform package, with hundreds of provisions that will reinstate 100% bonus depreciation for both new and used business assets.

The provision, which was set to expire for this year, has been extended and as well as for qualified production property, this can be applied to assets including yachts, helicopters and aircraft – acquired and placed in service after 19 January 2025. The bill was signed into law by President Trump on 4 July 2025.

Background

Bonus depreciation is also known as the additional first-year depreciation deduction. It is a US tax incentive dating back to 2017 that allows a US business to immediately deduct a large percentage of the purchase price of eligible purchases of business assets, such as machinery, rather than write them off evenly over their useful life as in traditional depreciation and annual capital allowances.

Bonus depreciation is an accelerated business tax deduction, or capital allowance used instead of allocating the cost evenly over the life of an asset in traditional depreciation. Depreciation helps reduce a company’s net taxable earnings, tax liability and cash flow spent on taxes, effectively diverting said tax flow into the purchase of business assets.

The effect is that with bonus depreciation, a company benefits from a substantial tax break in the year the asset was acquired.

What Is The ‘One Big Beautiful Bill’?

Signed into law in July 2025, the ‘One Big Beautiful Bill’ restores full first-year expensing for qualified property, including aircraft, Helicopters, and yachts used in a trade or business. Interestingly, the bill also offers interest deductions on auto loans for automobile purchases.

• For the US ship building business the bill creates a $29 billion dollar injection into US ship building, although this is primarily targeted at the defence sector there will be innovation, jobs and training spin offs to yacht building ship yards in America.
• For those flying and sailing in US airspace and waters, there should be an improvement in Coast Guard and Air Traffic Control (ATC). The bill creates $23 billion in funding for the U.S. Coast Guard and $12 billion in ATC funding. For those seeking to travel beyond airspace the bill also creates $10 billion funding for NASA.
• America is indeed building again. There are provisions to launch construction of a brand new air traffic control system. The US administration realises that, an all new air traffic control system is a prerequisite to ushering in the next generation of aviation and keeping passengers flying and safe. Over $12.5 billion is ringfenced for this ATC upgrade.
• The Coast guard investment highlights include:
  • $4.4 billion for shore infrastructure, training facilities and homeports
  • $4.3 billion for Polar Security Cutters, extending U.S. reach in the Arctic
  • $4.3 billion for nine new Offshore Patrol Cutters
  • $3.5 billion for three Arctic Security Cutters
  • $2.3 billion for more than 40 MH-60 helicopters
  • $2.2 billion for Depot Level Maintenance to sustain readiness
  • $1.1 billion for six new HC-130J aircraft and simulators
  • $1 billion for Fast Response Cutters
  • $816 million for Light and Medium Icebreaking Cutters
  • $266 million for Long-Range Unmanned Aircraft Systems
  • $170 million for Maritime Domain Awareness, including Next-Generation Sensors
  • $162 million for three Waterways Commerce Cutters

How To Qualify?

To benefit from 100% bonus depreciation in the USA:

• The asset must be used at least 50% for qualified business purposes
• It must be placed in service (i.e., delivered and operational) after 19 January 2025
• Buyers who signed contracts before that date may still qualify, but eligibility depends on delivery terms and usage.

For yachts to qualify as a business asset, this typically means entering a legitimate charter program, advice should be sought on doing this correctly.

For aircraft, it may involve corporate use, leasing, or charter operations. Martyn Fiddler are working with existing clients on both sides of the Atlantic exploring their eligibility and recommend that if you are considering a purchase in the US this year you contact our specialist teams and commission written tax advice. This deduction can significantly reduce your taxable income, but documentation and compliance are critical.

The big picture result means that eligible buyers can deduct the entire purchase price of a qualifying aircraft or yacht in the year it is placed into business service.

What Will Be The Effect Of The Bill?

The yacht and jet industry both sides of the Atlantic are set to benefit as they did heavily in the past, witnessing a surge of American buyers shopping for assets in Europe to take back to North America. Primarily the benefit will be in the driving of orders, maintaining values, and also building jobs in these skilled industries from the act since the most numerous yacht and business aircraft owners are American, 70% of business jets for example are based in North America. Both yachts and business jets require significant maintenance so the industry will be driven for several years after by this act.

Both the yacht and the aircraft industry also closely follows the performance of the American stock market so a buoyant stock market will leverage the act further.

The big beautiful bill also includes significant spending in the defense sector. Business aviation especially benefits directly from innovation in this sector, but also significantly benefits from a pool of highly skilled labour and research and facilities that comes from US defense spendings, so the Act is likely to create benefits for business aviation for several years to come.

A spanner in the works for the bill could be for US businesses and owners buying from overseas yards and manufacturers, in that tariffs could be heavily imposed on importation of such assets. The result of the looming US tariff deadlines and possible reciprocal measures by countries and trading blocs mean we could see a rush to order and expense before tariffs are applied.

At the time of writing, many tariffs deadlines are being extended, and the stock market has very much priced in amicable resolutions to the tariff negotiations, despite the Presidents ambitious time scale and rhetoric. Practical extensions will be needed due to the sheer number of deals that President Trump said must be done.

We are also hopeful for business aviation carve outs due to the importance of these sectors to business and the wider economy, both to the US and the other large trading blocks. Boeing, Textron, Dynamics (Gulfstream), GE, Collins, Duncan Aviation, big players in the business aviation market are set to benefit. But these businesses are also joined by smaller plane producers such as Epic Turbo props, Piper, Cessna, and international companies with manufacturing basis in the US such as the French company Daher with its manufacturing bases for TBM 960 and Kodiak 900/100 turboprops are all set to benefit from increased demand from customers.

Securing a slot now for new aircraft and second hand aircraft will be key. Values are also likely to be buoyed up by increased demand.

The bonus depreciation presents a powerful incentive for high net worth individuals with successful profitable businesses and also for businesses to plan acquisitions in 2025 and beyond – it will also lead to significant purchases towards the end of tax years as business owners effectively evaluate if they have the cash reserves and the profitability head room to purchase a business aircraft or yacht.

Early cash flow forecasting and tax modelling by buyers can significantly support businesses in making well informed acquisition decisions. Purchasing an aircraft, helicopter, or yacht requires time – for inspections, engineering surveys, tax and customs planning. Building a deal team early, seeking expert advice, and establishing the right ownership solution and registration pathway will pay dividends in the long run, especially since every buyer, business, and asset is unique.

Act Now: The Window Is Open

• With 100% bonus depreciation extended, but various deadlines looming for the application of tariffs, now is the time to act.
• It’s important to note the IRS closely scrutinises luxury assets claimed as business expenses – so professional guidance, a written tax strategy by a qualified tax professional, is essential.
• These are mobile assets so a full mission and operation discussed and global taxes in multi jurisdictions considered, further these are crewed assets. Part of the bill includes significant funding for immigration and customs enforcement (ICE). ICE, Crew considerations of documentation must also be considered for these assets.

Our professional team of chartered tax advisors and corporate administrators are here to support your current and future high value asset purchases, sales and ownership solutions. We provide expert guidance and peace of mind on taxation, tariffs, ownership solutions, registration, and company services – so that our clients’ can enjoy their asset with confidence and maximise its profitability. Contact hello@martynfiddler.com to learn more.