Aircraft Bonus Depreciation 2026 Calculator

Aircraft bonus depreciation in 2026 is 40% under the IRC §168(k) phase-down schedule (down from 100% in 2017-2022, 80% in 2023, 60% in 2024, 40% in 2025-2026). Business use must exceed 50% under §280F to qualify for accelerated MACRS depreciation. Charter aircraft and Part 135 operators may qualify for enhanced treatment.

2026 Bonus Depreciation Phase-Down Schedule

Under IRC §168(k), as modified by the TCJA, bonus depreciation phases down annually: 2022 = 100%, 2023 = 80%, 2024 = 60%, 2025 = 40%, 2026 = 40% (extended), 2027 = 20%, 2028 = 0%. For aircraft placed in service in 2026, you can deduct 40% of the depreciable basis in Year 1. The remaining 60% follows the MACRS 5-year (Part 91 business use) or 7-year (commercial Part 135) recovery period. Rev. Proc. 2025-32 confirmed the 2026 rate at 40% absent further Congressional action.

§280F Business Use Test (50% Minimum)

IRC §280F is the critical gate. Business use must exceed 50% measured by occupied seat-miles or flight hours for the taxable year. If business use drops to 50% or below: (1) no bonus depreciation allowed, (2) MACRS accelerated depreciation disallowed — must use straight-line over the Alternative Depreciation System (ADS) period (6 years Part 91, 12 years Part 135), (3) recapture of prior accelerated depreciation. Personal flights by 5%+ owners are NOT business use, even if reimbursed under SIFL rates. Demonstration flights and training flights generally count as business.

§280F Luxury Auto Limits Don't Apply to Aircraft

A common misconception: §280F luxury vehicle caps ($20,200 Year 1 in 2026) apply to "passenger automobiles." Aircraft are excluded from these dollar caps under §280F(d)(5)(A)(ii) — aircraft fall under "listed property" rules but are exempt from the per-vehicle dollar limitations. This means a $10M aircraft with 80% business use can take the full 40% bonus on $8M ($3.2M Year 1 deduction), unlike a luxury car limited to $20,200. The trade-off: aircraft remain "listed property" requiring strict business-use logs (date, route, hours, passenger names, business purpose).

Charter & Part 135 Considerations

Aircraft used in commercial charter (Part 135) are treated as 7-year MACRS property and may qualify for bonus depreciation even if Part 91 personal use exceeds 50%, provided combined commercial + business use clears 50%. Charter income subjects you to federal excise tax (FET) at 7.5% on transportation and the $4.80/segment fee. Lease-back to a charter operator must be at arms-length fair-market rate, documented with a written agreement, and the operator must hold the Part 135 certificate — otherwise the IRS recharacterizes as personal use under Reg. §1.61-21 and disallows depreciation. Bonus is also disallowed for any aircraft used predominantly outside the US.

Last updated May 2026. Sources: IRC §168(k), §280F, Rev. Proc. 2025-32, IRS Pub. 946.