Business Aviation
IRS Expands 100 Percent Bonus Depreciation for Business Aircraft
IRS Notice 2026-11 clarifies 100% bonus depreciation eligibility for business aircraft delivered after January 19, 2025, benefiting accrual-basis taxpayers.
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)
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
Photo Credit: NBAA
Business Aviation
Textron Aviation Q3 2026 Results: Citation Deliveries Rise 21%
Textron Aviation revenue reached $1.7B in Q3 2026 as Cessna Citation deliveries rose 21%, prompting a full-year EPS guidance increase.
Textron Inc. reported a 21 percent year-over-year increase in Cessna Citation business jet deliveries for the third quarter of 2026, driving Textron Aviation revenues to $1.7 billion and prompting the manufacturer to raise its full-year earnings guidance.
In a press release issued on October 29, 2026, the Providence, Rhode Island-based company detailed strong continued demand in the business aviation sector. This jet demand offset a slight softening in commercial turboprop deliveries and lower military helicopter revenues at its Bell division.
Business jet demand drives aviation growth
Textron Aviation, headquartered in Wichita, Kansas, recorded $1.7 billion in third-quarter revenue, representing a $201 million or 14 percent increase over the same period in 2025. The segment delivered 51 Cessna Citation jets during the quarter, up from 42 in the third quarter of 2025. Commercial turboprop deliveries fell to 32 units, down from 39 units the previous year.
Despite the drop in turboprop volume, Textron Aviation segment profit rose by $7 million to $179 million, a 4 percent year-over-year increase. The company attributed part of this financial growth to its aftermarket parts and services division, which saw revenues increase by $49 million in the third quarter of 2026 due to higher volume and pricing. The aviation segment ended the quarter with an $8.0 billion backlog.
Bell revenues dip amid military volume shifts
The company’s rotorcraft division, Bell, reported third-quarter 2026 revenue of $933 million, a 9 percent or $93 million decline year-over-year. Bell delivered 29 commercial Helicopters in the quarter, down slightly from 30 in the third quarter of 2025. Textron attributed the revenue decline primarily to lower military volume on the MV-75 Cheyenne program.
Recent legislative actions are expected to support future defense revenue for the division. In October 2026, the United States Army received Congressional approval for a funding request related to the MV-75 Cheyenne program. This approval led to associated contract modifications that obligate funding for Bell. The division maintained a backlog of $7.6 billion at the end of the third quarter.
Textron Systems reported third-quarter 2026 revenue of $360 million, representing a 16 percent or $50 million increase over the same period in 2025.
Textron’s broader market footprint
Textron Inc. operates a global network of aircraft, defense, industrial, and finance businesses. Its aviation segment manufactures the Cessna and Beechcraft brands, which together account for more than half of all general aviation aircraft worldwide.
Across all divisions, total Textron Inc. revenue for the third quarter of 2026 reached $3.8 billion, a 4 percent or $149 million increase year-over-year. The company reported an adjusted Earnings Per Share (EPS) of $1.76, up from $1.55 in the third quarter of 2025. Based on these results, Textron Inc. raised its full-year 2026 adjusted EPS guidance to a range of $6.55 to $6.65.
AirPro News analysis
The divergence between Textron’s jet and turboprop deliveries highlights a bifurcated market in late 2026. While corporate flight departments and high-net-worth individuals continue to absorb Cessna Citation production slots, the commercial turboprop sector appears to be cooling. We view the $8.0 billion aviation backlog as a strong buffer against near-term economic volatility. The newly approved MV-75 Cheyenne funding will likely be critical to stabilizing Bell’s defense revenues in upcoming quarters as the company navigates shifting military procurement cycles.
Photo Credit: Textron Aviation
Business Aviation
Signature Aviation Launches Signature Access FBO Pricing
Signature Aviation replaces fragmented FBO fees with a single parking charge across its continental US network via Signature Access.
Signature Aviation has overhauled its billing structure across the continental United States with the introduction of Signature Access, a consolidated pricing model that replaces fragmented handling and infrastructure fees with a single parking charge. Announced on October 27, 2026, the program allows Private jets operators to calculate exact costs prior to arrival based on aircraft dimensions and length of stay.
The move directly addresses a long-standing industry demand for Fixed Base Operator (FBO) fee transparency. In a press release detailing the rollout, Signature Aviation confirmed the new structure is now active across the vast majority of its US network, supported by an online cost estimator tool designed to eliminate billing surprises for flight departments and private owners.
Simplifying the FBO billing structure
Historically, FBO invoices have included a complex array of separate non-fuel charges, including handling fees, infrastructure fees, and parking fees. The Signature Access program retires these fragmented charges. Instead, operators will see a single charge calculated using a location-specific price per square foot, multiplied by the aircraft’s manufacturer-specified length and width, and the duration of the stay.
To incentivize fuel uplifts, the program integrates fuel purchases into the pricing model. Eligible fuel purchases automatically trigger a first-hour parking waiver. If an operator meets aircraft-specific minimum fuel volumes, the parking charge is further reduced, appearing on the final invoice as a “Fuel Discount.”
Optional ground services, such as hangar accommodations, ground power units (GPU), and lavatory servicing, remain outside the consolidated parking fee and will continue to be billed separately.
“We are grateful to the guests and operators whose perspectives helped shape Signature Access. Their feedback was instrumental in creating a clearer, more predictable pricing approach that gives guests greater visibility, flexibility and control.”
The statement from Derek DeCross, Chief Commercial Officer for Signature Aviation, noted that the program reflects a broader commitment to investing in the guest experience.
Market context and recent network developments
FBO fee transparency has been a significant topic of debate within the business aviation sector. Flight departments and charter operators have frequently advocated for clearer pricing structures before committing to an arrival terminal. By consolidating fees and providing an online estimator, Signature Aviation is positioning itself to capture operators who prioritize predictable trip costing.
Signature Aviation operates the world’s largest network of private aviation terminals, providing ground handling and support services at more than 200 locations across 27 countries on five continents. The pricing overhaul follows a series of recent strategic announcements from the company.
On October 20, 2026, the FBO operator announced enhancements to its TAILWINS loyalty program for pilots, expanding options for earning and redeeming points. The following day, on October 21, 2026, the company launched the Signature UrbanV Alliance (SUVA), a joint venture aimed at developing Advanced Air Mobility (AAM) infrastructure across the North America.
AirPro News analysis
The rollout of Signature Access marks a structural shift in how the largest player in the FBO market handles its revenue model. By tying the primary non-fuel cost strictly to the aircraft’s physical footprint and time on ramp, Signature is standardizing a process that has historically been opaque and highly variable between different locations and service providers. The integration of fuel discounts directly against the parking fee also creates a clear financial incentive for operators to uplift fuel rather than tankering, potentially driving higher fuel volumes across the Signature network while satisfying operator demands for billing clarity.
Photo Credit: Signature Aviation
Business Aviation
HALO-Flight Orders Bell 407GXi to Expand IFR Fleet to Seven
South Texas nonprofit HALO-Flight ordered an additional Bell 407GXi at AMTC 2026, growing its IFR-capable fleet to seven aircraft.
South Texas air medical provider HALO-Flight has placed a purchase order for an additional Bell 407GXi Helicopters, expanding its instrument flight rules (IFR) capable fleet to seven aircraft. The agreement was announced on October 27, 2026, at the Air Medical Transport Conference (AMTC) in Fort Worth, Texas.
The acquisition supports the nonprofit organization’s emergency scene response and interfacility transport missions across a 24,000-square-mile service area. In a press release issued by Bell Textron Inc., the manufacturer noted the aircraft will soon join HALO-Flight’s operations as the operator enters its 40th year of service.
Fleet expansion and operational capabilities
“HALO-Flight’s work across North America calls for reliable, high-performing aircraft,” said Lane Evans, Managing Director, North America for Bell. “The Bell 407GXi provides the power and safety that air medical crews count on every day.”
Travis Patterson, CEO of HALO-Flight, highlighted the decades-long relationship with the manufacturer as the operator scales to meet regional needs.
The Bell 407GXi is powered by a Rolls-Royce 250-C47E/4 dual-channel FADEC turbine engine. It delivers a maximum cruise speed of 133 knots and a range of 337 nautical miles. Designed for Helicopter Emergency Medical Services (HEMS), the aircraft is equipped with the Garmin G1000H NXi integrated flight deck. This system enables IFR operations, providing advanced navigation and enhanced situational awareness in varied weather conditions.
Modernization of South Texas air medical infrastructure
Established in 1987, HALO-Flight serves 23 counties and over one million residents from bases in Corpus Christi, Alice, and Beeville, Texas. The operator provides life-saving transport regardless of a patient’s ability to pay.
The organization has steadily modernized its infrastructure and fleet over the past two years. In October 2025, Bell delivered what was then described as the fifth and final Bell 407GXi of an initial fleet renewal program. The latest order brings the total to seven, indicating continued growth beyond the original renewal scope.
In March 2026, HALO-Flight became the first HEMS operator in the United States to achieve full fleet-wide Health and Usage Monitoring System (HUMS) coverage. The operator outfitted its operational Bell 407GXi helicopters with the GPMS International Foresight MX system to enhance maintenance predictability and safety.
The organization also broke ground on a new headquarters and dispatch center in Corpus Christi in June 2026. The facility is expected to be completed by late 2026 and is designed to modernize aircraft tracking and control across the provider’s extensive service area.
Photo Credit: Bell Textron Inc.
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