A newly passed federal spending bill is poised to breathe fresh life into the private jet market, as wealthy business owners look to capitalize on accelerated tax write-offs. The legislation reinstates a key tax break, known as bonus depreciation, that allows for the full cost of a new or used business jet to be deducted in the first year of purchase.

The provision, a revival of a 2017 tax measure, replaces the previously scheduled phased reductions in depreciation (60% in 2024, 40% in 2025). Effective for any business jet placed into service on or after January 19, 2025, the incentive is already generating renewed interest among high-net-worth buyers who had previously been holding off.

Aviation brokers and advisory firms report a noticeable uptick in client activity since the bill’s passage. Business owners who use jets through corporate entities or holding companies are now moving up their timelines for upgrades or new acquisitions, aiming to lock in the benefit before year-end.

This renewed demand comes at a critical time for the private aviation sector. Following explosive growth in 2020 and 2021, driven by pandemic-era travel concerns and a surge in first-time buyers, the industry has since cooled. Rising maintenance costs, pilot shortages, and operational complexities have prompted many new owners to sell their aircraft or shift to fractional ownership models.

The market has responded with an increase in available pre-owned jets, now averaging over 1,800 listings monthly in the first half of 2025, up from 1,744 a year earlier. Additionally, the average time a jet remains on the market has climbed to 418 days, reflecting a more cautious buyer environment.

Analysts suggest the full impact of the new tax incentives won’t be seen until the fall, when businesses begin preparing their financials and tax strategies. Historically, private jet transactions tend to spike toward the end of the year as buyers rush to take advantage of available deductions before deadlines.