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David Shannon and Dan Feldman Publish Article for NBAA on 100% Bonus Depreciation for Business Aircraft under OBBBA

Fort Lauderdale, Fla. (August 7, 2025) - Fort Lauderdale/New York Partner David Shannon and New York/New Jersey Partner Dan Feldman recently published an article for the National Business Aviation Association (NBAA) titled “100% Bonus Depreciation, Advanced Technical Implications,” which discusses the planning opportunities that aircraft buyers may be able to use to avail themselves of bonus depreciation deductions under the One Big Beautiful Bill Act of 2025 (OBBBA).

The authors open the article by explaining that OBBBA “permanently allows for 100 percent bonus depreciation for new and used aircraft ‘acquired’ and ‘placed in service’ on or after January 20, 2025.” They further note that this law generally replaces the bonus depreciation phase down under the Tax Cuts and Jobs Act of 2017 (TCJA).

The article goes on to observe that “there is a potential narrow path for aircraft owners (and future aircraft owners) that executed aircraft purchase agreements prior to the effective date under OBBBA of January 20, 2025, to claim 100% bonus depreciation.” The authors describe that choosing this path is “a complex endeavor that requires assistance of experienced tax advisors” and a “step-by-step, facts and circumstances analysis.” Next, Messrs. Shannon and Feldman provide a detailed analysis of the provisions of OBBBA and the Internal Revenue Code (IRC) that relate to the 100% bonus depreciation deduction. The authors also note that because 100% bonus depreciation has historically impacted market conditions in the business aviation industry in terms of buyer demand and thus aircraft prices, potential aircraft buyers should consult with an aircraft broker and advisor team to be positioned to move quickly with an acquisition.

The authors point out the structuring pitfalls that remain with aircraft acquisitions, even with the change in law, such as mismatching of income and deductions, classification of passengers, states decoupling from federal bonus depreciation, and others.

Mr. Shannon is the chair of Lewis Brisbois’ Business Aviation Practice, while Mr. Feldman serves as co-chair of the firm's Executive Compensation & Employee Benefits Practice and as vice-chair of the firm's Business Aviation Practice. Their practice focuses on structuring the purchase and sale of business aircraft for Fortune 500 companies, large international corporations, ultra-high net-worth clients, and family offices. The Lewis Brisbois Business Aviation team is nationally recognized as a leading resource for aircraft structuring and compliance considerations, particularly with respect to qualifying for and utilizing bonus depreciation.

Read the full NBAA article here (subscription may be required).


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