IRS Guidance Expands 100% Bonus Depreciation Eligibility for Aircraft Owners

On January 14, 2026, the Internal Revenue Service (IRS) issued Notice 2026-11, providing critical interim guidance regarding the “One Big Beautiful Bill Act” (OBBBA). This legislation, signed into law in July 2025, permanently reinstated 100% bonus depreciation for qualified property, including business aircraft, acquired and placed in service after January 19, 2025.

According to an industry update published by the National Business Aviation Association (NBAA), the new guidance offers a significant technical clarification that could save aircraft buyers millions in tax liability. Specifically, the guidance addresses the treatment of “binding written contracts,” potentially allowing taxpayers who ordered aircraft under previous, less favorable tax rules to qualify for the full 100% deduction upon delivery.

The “Binding Contract” Trap and the New Solution

Under the Tax Cuts and Jobs Act (TCJA) of 2017, bonus depreciation was scheduled to phase down. For the 2025 tax year, the deduction was set to drop to 40% generally, or 60% for certain aircraft with longer production periods. Many buyers signed binding purchase contracts in 2024 or early 2025 expecting these lower rates.

Typically, tax rules consider property “acquired” on the date a binding written contract is signed. This created a potential trap: buyers who signed contracts before the new law took effect (on or before January 19, 2025) but took delivery afterward might have been locked into the lower phase-down rates.

Relief for Accrual-Basis Taxpayers

The NBAA reports that Notice 2026-11 provides a vital workaround. The guidance clarifies that for accrual-basis taxpayers, a category that includes most corporations and large flight departments, the acquisition can effectively be treated as occurring upon delivery or title transfer.

Consequently, a buyer with a contract from 2024 who took delivery on January 25, 2025, may now claim 100% depreciation rather than the previously expected 40% or 60%. However, the NBAA notes that cash-basis taxpayers face a more difficult hurdle, as they recognize expenses when cash is paid, potentially leaving them subject to older rates if significant payments were made prior to the cutoff.

“Business aircraft owners require a detailed factual analysis in order to present accurate tax returns. There are advanced technical positions that support eligibility for 100% bonus depreciation…”

, David Shannon, Partner at Lewis Brisbois (via NBAA)

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Strategic Elections: When to Take Less

While the return of 100% bonus depreciation is generally welcomed, the IRS guidance also outlines a “Transition Election” allowing taxpayers to opt for the lower rates. According to the research data, taxpayers can choose to apply the 40% rate (or 60% for longer-production aircraft) for the first tax year ending after January 19, 2025.

Tax experts suggest this counterintuitive move may be vital for specific tax planning strategies:

• Preserving Net Operating Losses (NOLs): A full 100% write-off might generate a loss larger than the company can utilize, as NOLs are generally limited to 80% of taxable income.
• Future Rate Arbitrage: If a company anticipates higher corporate tax rates in future years, deferring deductions by taking a smaller percentage now could yield greater long-term savings.
• Credit Preservation: Reducing taxable income to zero might cause other valuable tax credits to expire unused.

AirPro News Analysis

We believe this guidance will have an immediate stabilizing effect on the pre-owned and new aircraft markets in Q1 2026. Throughout late 2025, uncertainty regarding the “binding contract” rule likely caused hesitation among buyers who were unsure if their transactions would qualify for the reinstated OBBBA benefits.

With the IRS confirming that delivery dates can supersede contract dates for accrual-basis taxpayers, we expect a flurry of retroactive tax planning for 2025 returns. Furthermore, the permanent nature of the 100% deduction removes the “use it or lose it” pressure that defined the previous phase-out era, likely leading to more consistent, sustainable demand rather than artificial year-end spikes.

Frequently Asked Questions

What is the effective date for the new 100% bonus depreciation?
The 100% rate applies to qualified property acquired and placed in service after January 19, 2025.

Does this apply to contracts signed in 2024?
Potentially. According to the new guidance, accrual-basis taxpayers who took delivery after January 19, 2025, may qualify for the 100% rate even if the contract was signed earlier. Consultation with a tax professional is required.

Can I still choose the 60% rate?
Yes. The guidance allows for a “Transition Election” to use the lower phase-down rates (40% or 60%) if that benefits your specific tax situation, such as preserving Net Operating Losses.

Sources

• NBAA

Wind Tunnel Success Marks Milestone for Hydrogen Business Aviation

On January 19, 2026, Toulouse-based manufacturers Beyond Aero announced the successful completion of a critical wind tunnel test campaign for its “One” (BYA-1) business jet. The testing, conducted at the German-Dutch Wind Tunnels (DNW) facility in Marknesse, Netherlands, serves as a primary validation of the aircraft’s novel aerodynamic architecture, specifically the integration of external hydrogen fuel tanks.

The campaign utilized a 1:8 scale model of the aircraft and spanned five weeks, generating over 60,000 data points. According to the company, these tests confirmed the stability and control of the design, validating the Computational Fluid Dynamics (CFD) models used during the preliminary engineering phase. This milestone keeps the program on track for a targeted entry into service in the early 2030s.

Validating the “One” Architecture

The primary engineering challenge addressed during this campaign was the aerodynamic impact of gaseous hydrogen storage. Unlike traditional jet fuel, which is stored in wings, hydrogen requires high-pressure tanks that occupy significant volume. Beyond Aero’s design places these tanks in fairings external to the pressurized fuselage, a configuration that frees up cabin space but introduces complex airflow considerations.

In the company’s press statement, the engineering team highlighted the necessity of this testing phase:

“Validating a hydrogen-driven aerodynamic architecture… Hydrogen propulsion introduces architectural constraints that fundamentally shape aircraft aerodynamics.”

The tests at DNW’s Low-Speed Facility (LST) focused on the interaction between the fuselage, wings, and these external nacelles. The data reportedly confirms that the aircraft maintains necessary lift and stability characteristics despite the structural modifications required for hydrogen propulsion.

Aircraft Specifications and Performance

The “One” is designed as a mid-size business jet falling under the CS-23 certification category. Based on the specifications released by Beyond Aero, the aircraft targets the following performance metrics:

• Range: 800 nautical miles (approx. 1,500 km), covering roughly 80% of typical business aviation missions.
• Capacity: 6 to 8 passengers.
• Speed: Cruise speed of 310 knots (approx. 575 km/h).
• Propulsion: A 1.2 MW hydrogen-electric powertrain consisting of two 600 kW electric-aviation ducted fans.

The powertrain relies on gaseous hydrogen stored at 700 bar. The company expects to reach a design freeze by early 2027.

Strategic Acceleration via Acquisition

While the wind tunnel tests validate the airframe, Beyond Aero has also accelerated its powertrain development through strategic asset acquisitions. Following the 2024 cessation of operations by Universal Hydrogen, Beyond Aero acquired that company’s patent portfolio, flight test data, and test benches.

This acquisition allowed Beyond Aero to bypass several years of research and development. In October 2025, the company announced it had achieved Technology Readiness Level 6 (TRL 6) for its propulsion system, a milestone significantly aided by the integration of the former Universal Hydrogen assets.

AirPro News Analysis

The successful wind tunnel campaign by Beyond Aero highlights a diverging path in the hydrogen aviation sector. While competitors like ZeroAvia have focused on retrofitting existing airframes (such as the Cessna Caravan or Dash 8) to expedite certification, Beyond Aero is pursuing a “clean-sheet” design. This approach allows for optimized integration of hydrogen tanks, arguably the most difficult physical constraint of hydrogen aviation, but it carries the higher capital risk and longer timelines associated with certifying a brand-new airframe.

Furthermore, the regulatory landscape remains a significant hurdle. The “One” is set to be certified under EASA CS-23 regulations, but current standards do not explicitly cover hydrogen electric propulsion. Beyond Aero’s “Pre-Application Contract” (PAC) with EASA suggests they are positioning themselves as a regulatory pathfinder, helping to define the “Special Conditions” required for future hydrogen aircraft. The successful aerodynamic validation of external tanks is a crucial step in proving to regulators that hydrogen infrastructure can be safely integrated into a certified airframe without compromising flight characteristics.

Sources

• Beyond Aero Press Release

This article is based on an official press release from REGENT.

Stealth Private Club ‘XXV’ Orders 30 REGENT Seagliders for East Coast Service

Rhode Island-based manufacturers REGENT has announced a significant fleet order from XXV, a private membership club headquartered in Southern Connecticut. The agreement includes a firm order for 30 “Viceroy” seagliders, the all-electric wing-in-ground effect vehicles designed to operate exclusively over water.

According to the company’s announcement, the partnership aims to establish a high-speed, zero-emission transportation network connecting key luxury destinations along the U.S. East Coast. Deliveries are scheduled to begin as early as 2027, potentially positioning the service ahead of many electric vertical takeoff and landing (eVTOL) air taxi competitors.

While the financial terms were not disclosed in the official release, market analysis of comparable orders, such as previous deals with Southern Airways Express and Ocean Flyer, suggests the total value of the 30-unit fleet could range between $300 million and $500 million.

Connecting the “Golden Routes”

XXV plans to deploy the Viceroy seagliders on some of the most congested and lucrative travel corridors in the United States. The press release confirms that the planned route network will service:

• New York City to The Hamptons
• Boston to Nantucket
• Palm Beach to Miami
• Miami to The Bahamas

The service targets the same demographic currently served by helicopter operators like Blade and seaplane operators like Tailwind Air, but with a promise of reduced noise and zero operating emissions. XXV stated that it intends to appoint a “high-profile U.S. operator” to manage the daily logistics and piloting of the fleet, rather than operating the vessels directly.

“We designed Seaglider vessels to remove friction from coastal travel, and XXV is applying that capability to create a member experience centered on our shared goals of convenience, comfort, and connection.”

, Billy Thalheimer, CEO of REGENT

The Buyer: Who is XXV?

The purchaser, XXV (pronounced “Twenty-Five”), is described as a private members club founded by Neill Etheridge and Jamie Petty. Despite the scale of the order, the organization maintains a low public profile, with no active public-facing membership portal currently available. The club positions itself as a provider of “innovative experiences centered around premier coastal destinations.”

In a statement regarding the acquisition, co-founder Neill Etheridge emphasized the transformative potential of the technology.

“REGENT’s Seaglider vessels transform travel from a constraint into an opportunity.”

, Neill Etheridge, Co-founder of XXV

Technology and Regulatory Strategy

The Viceroy is a 12-passenger, all-electric craft capable of speeds up to 180 mph (156 knots). It operates using the “wing-in-ground” (WIG) effect, flying on a cushion of air within one wingspan of the water’s surface. Because the vehicle never flies at high altitudes, it is classified as a maritime vessel by the U.S. Coast Guard (USCG) rather than an aircraft by the FAA.

This classification is critical to the project’s timeline. By adhering to maritime regulations, REGENT aims to bypass the lengthy and expensive certification backlog currently facing electric aviation startups. The Viceroy operates in three modes: floating on its hull near docks, hydrofoiling in harbors, and flying at low altitude over open water.

AirPro News Analysis

The order from XXV highlights a growing trend of private capital seeking to disrupt regional mobility through “regulatory arbitrage.” By utilizing the USCG maritime classification, operators like XXV can potentially launch high-speed regional services years before FAA-certified electric air taxis enter the market.

However, challenges remain. While the “boat” classification simplifies certification, the operational reality of flying a vehicle at 180 mph near crowded waterways like New York Harbor will likely invite scrutiny. Furthermore, the viability of the network depends on the installation of high-voltage maritime charging infrastructure at destinations like Nantucket and the Hamptons, which is currently virtually non-existent.

If successful, this model poses a direct threat to existing helicopter services. The Viceroy promises a smoother ride than traditional boats and a significantly quieter acoustic profile than helicopters, potentially unlocking access to noise-sensitive ports that have previously banned air traffic.

Frequently Asked Questions

Is the Viceroy a plane or a boat?
Legally, it is a boat. The U.S. Coast Guard classifies it as a maritime vessel because it operates exclusively in ground effect, just a few feet above the water.

When will the service launch?
Deliveries are scheduled to begin in 2027, though the exact launch date for passenger services will depend on operator readiness and infrastructure development.

How fast can it go?
The Viceroy has a top speed of 180 mph, making it approximately six times faster than a traditional ferry.

Sources

• REGENT Press Release