Aircraft depreciation calculator
Estimate federal and state tax savings from aircraft depreciation under current law (OBBBA 2025).
Aircraft used in a trade or business are depreciable assets under IRC Section 167/168. Private aircraft operated under Part 91 use a 5-year MACRS recovery period; charter aircraft under Part 135 use 7-year MACRS. The applicable percentage tables come from IRS Publication 946.
The One Big Beautiful Bill Act (OBBBA), signed in 2025, permanently restored 100% first-year bonus depreciation under Section 168(k), retroactive to property placed in service after January 20, 2025. For 2023 and 2024, the TCJA phase-down applies (80% and 60% respectively).
Section 179 allows an election to expense up to $2,500,000 of the cost in the first year (OBBBA limit), subject to a phase-out beginning at $4,000,000 total placed-in-service cost. Section 179 is taken before bonus depreciation.
The convention determines how much depreciation is allowed in the first and last recovery years. The half-year convention (default) treats property as placed in service at the midpoint of the year. If more than 40% of depreciable assets are placed in service in Q4, the mid-quarter convention applies, reducing the first-year deduction.
If business use drops below 50%, Section 280F requires use of the Alternative Depreciation System (ADS) with straight-line recovery — 6 years for Part 91, 12 years for Part 135 — and disallows both bonus depreciation and Section 179.
State conformity varies. Some states (CA, NY, NJ, PA, and others) require an add-back of federal bonus depreciation and may cap Section 179. This calculator models state-specific rules for all 50 states + DC.
Disclaimer: This calculator provides estimates for educational purposes only. It does not constitute tax advice. Consult a qualified aviation tax professional or CPA for your specific situation. Actual tax treatment may vary based on facts and circumstances not modeled here.