Updated . Educational only — not tax, legal, or lending advice. Confirm figures with your CPA, the state revenue department, and a lender before you close.
The 2026 Numbers, and the Date That Matters
For qualified property acquired after January 19, 2025, federal bonus depreciation is a permanent 100% additional first-year deduction. That is IRS Notice 2026-11, announced in IR-2026-06 on January 14, 2026, implementing the One, Big, Beautiful Bill. The old phase-down schedule is not the rule to quote for property that meets the acquisition-date test.
Section 179 for tax years beginning in 2026
IRS Publication 946 states a maximum Section 179 expense deduction of $2,560,000. The limit is reduced, dollar for dollar, by the cost of Section 179 property placed in service above $4,090,000. Secondary summaries put full phase-out at $6,650,000. The deduction still cannot exceed taxable business income, with a carryforward of the excess. These are federal numbers. State conformity is separate.
The election not to take 100%
Notice 2026-11 also describes an election to deduct 40% instead of 100%, and 60% for certain longer-production-period property and certain aircraft, for qualified property placed in service during the first tax year ending after January 19, 2025. That election is a planning tool when you do not want the entire deduction in one year. It is not the default.
How to use this beside a loan
Put the actual loan payment into the calculator. Separately, ask your CPA what the 2026 deduction does to this year’s federal tax if business-use logs will support it. Do not reduce the loan payment by a guessed tax refund. A refund that depends on income you have not earned yet is not debt service. The mechanism, including recapture, is on the mechanics page.
There is no extra federal “green aircraft” layer on top of these rules. See green-aviation tax claims.
Questions buyers actually ask
Is every aircraft 100% deductible in 2026?
No. It has to be qualified property, acquired after January 19, 2025, placed in service, and used more than 50% in a qualified business, with logs. Personal aircraft do not qualify.
Do I have to take 100%?
No. The notice describes a 40% election, and 60% for certain aircraft and longer-production property, for the first tax year ending after January 19, 2025. Talk to your CPA before you elect.