Trump’s new tax law makes it easier for the ultrawealthy rich to buy private jets

A controversial provision in former President Donald Trump’s newly passed economic bill is drawing scrutiny for offering a massive tax break to the ultra-rich, especially those eyeing private jets.

At the heart of the bill is the permanent reinstatement of the 100% bonus depreciation rule. This allows businesses to write off the entire cost of qualifying assets like private aircraft in the same year they are purchased. Previously, the tax break was gradually phasing out and set to end by 2027.

The change means someone buying a $10 million jet can now deduct the full $10 million immediately, cutting millions off their taxable income. According to BOK Financial’s aviation expert Matthew Bere, this “is a very big deal” and is expected to “spur a lot of activity in aircraft sales.”

Critics say the measure serves the wealthy at the expense of everyday Americans. Chuck Collins of the Institute for Policy Studies called it a “massive tax break for billionaires and centi-millionaires,” accusing the private jet lobby of pushing the rule through quietly. Environmentalists have also expressed alarm, citing the heavy carbon footprint of private flights, 65% of which depart from the U.S.

The Congressional Budget Office estimates the provision will cost U.S. taxpayers a staggering $378 billion over the next decade. Meanwhile, an analysis by Yale University shows the lowest-income Americans could see a 2.9% drop in income, while the top 1% benefit from a 1.9% increase.

While aviation firms and charter providers like FlyUSA have praised the move as a “game-changer,” lawmakers like Senator Mark Kelly say it paints a clear picture: “This bill gives another tax break to the ultrawealthy, so they can buy another private jet.”

Read more on Trump lifts supersonic flight ban, paving way for faster air travel over U.S. skies