As we move into 2026, the business aviation industry is defying earlier predictions of a slowdown, entering the year on solid footing. Following the tumultuous, yet high-demand COVID surge and the last few years of ‘normalization’, 2026 is emerging as a year of continued stabilization, strategic growth, and, for savvy buyers, significant opportunity.

If you are a business owner or stakeholder considering augmenting your company’s transportation capabilities, 2026 presents a compelling, tax-advantaged, and strategic moment to enter or upgrade in the pre-owned and new aircraft market.

THE 2026 LANDSCAPE: 100% BONUS DEPRECIATION IS HERE TO STAY

Perhaps the most significant driver for 2026 sales is the permanence of favorable tax policy. Following the enactment of legislation in 2025 (often referenced as the One Big Beautiful Bill Act), 100% bonus depreciation is applicable for business aircraft placed in service in 2026.

• Maximum Tax Efficiency: Businesses can deduct 100% of the cost of qualified new or used aircraft in the first year they are placed into service.

• No Phase-Out: Unlike previous tax schedules that reduced bonus depreciation annually, the current, updated tax code provides 100% depreciation without a scheduled phase-down.

• Expanded Eligibility: Recent IRS guidance (Notice 2026-11) has clarified that for many, 100% bonus depreciation applies even if purchase agreements were signed previously, provided the aircraft was placed in service on or after January 20, 2025. Check with your tax professional to see if this could be applicable to your tax situation.

For firms analyzing their CapEx strategy, this immediate expensing creates a massive, upfront tax deduction, significantly lowering the net cost of acquisition.

MARKET UNCERTAINTY AS OPPORTUNITY

While the market is strong, the 2026 economic landscape is not without “uncertainty” ranging from fluctuating interest rates to geopolitical factors influencing global trade. However, in business aviation, uncertainty is rarely a barrier—it is an invitation for calculated, strategic action.

Here is how current market conditions create opportunity for buyers:

1. INVENTORY BALANCING AND SELECTION

Following a period of critically low inventory (2020–2023), the pre-owned market has seen a correction, offering a better selection of aircraft in 2026. While top-tier, 0-5-year-old aircraft remain in high demand, increased inventory availability means buyers can be more selective in finding the right asset that matches their mission profile, rather than merely settling for what is available.

2. A ‘NORMALIZED’ USED MARKET

The intense urgency seen in recent years—driven by the rush to meet the 100% bonus deadline—has subsided. The market has ‘normalized’, and this gives buyers in 2026 more options available and breathing room to conduct thorough Pre-Purchase Inspections (PPIs) and negotiate on more of a balanced playing field.

3. INCREASED OEM PRODUCTION

New aircraft manufacturers are continuing to work towards increased production rates to address backlogs. This will result in better availability and shorter lead times for new, fuel-efficient aircraft with advanced avionics, allowing businesses to upgrade to more sustainable and productive platforms faster.

THE 2026 ACTION PLAN

The 2026, 100% bonus depreciation landscape makes it an ideal time to buy, but success depends on preparation.

• Move Early on Tax Strategy: Although the 100% rate is permanent, waiting until December to close a transaction can cause bottlenecks in MRO (Maintenance, Repair, and Overhaul) shops for inspections.

• Focus on Business Use: To qualify for 100% bonus depreciation, the aircraft must be used >50% for qualified business purposes. Again, talk to your tax professionals to get the specifics and how it may apply to your specific tax situation.

• Build Your “Deal Team”: Engage with aviation-specialized tax advisors and IADA certified aircraft brokers who are experienced and trusted early to navigate the complex, yet rewarding, aviation landscape of 2026.

INGREDIENTS FOR SUCCESS

The 2026 business aircraft market is characterized by a “friendly” tax environment in the U.S., with 100% bonus depreciation powering demand. While the broader economy may feel uncertain, the ability to immediately expense a capital asset that drives efficiency, timesaving, and productivity remains a concrete opportunity.

Disclaimer: Tax laws are complex and subject to change. Always consult with a qualified tax professional before making acquisition decisions.