Updated . Educational only — not tax, legal, or lending advice. Confirm figures with your CPA, the state revenue department, and a lender before you close.
There Is No Separate Federal “Green Aircraft” Write-Off
A quieter or electric aircraft does not get a special federal deduction on top of the deduction any other business aircraft gets. The rules that do exist are Section 179 and bonus depreciation, and they turn on business use and acquisition date, not on a green label.
What people conflate
- Bonus depreciation under IRS Notice 2026-11 is 100% for qualified property acquired after January 19, 2025. It is not a green credit. A piston used more than 50% in a qualified business can qualify. An electric aircraft that is a personal toy does not, any more than a piston toy does.
- Sustainable aviation fuel incentives, where they exist, apply to fuel, not to the purchase price of the airplane. They do not reduce your loan balance.
- State grants, airport incentives, and utility rebates are local, capped, and easy to double-count in a pitch deck. Get the award letter before you subtract the money from the price.
Anyone who tells you the aircraft is “100% deductible because it is green” is skipping the business-use test, the listed-property rules, and the state-decoupling problem. Your CPA has to apply those. The lender does not lend against a deduction. The lender lends against the aircraft and your ability to pay if the deduction is disallowed.
Questions buyers actually ask
Does an electric aircraft automatically qualify for bonus depreciation?
Only if it is qualified property placed in service in a trade or business at the required business-use percentage. The powerplant does not decide it.
Can I finance the aircraft assuming the tax refund will make the payments?
You can model that. You should not need the refund to survive the first year. Refunds slip. Payments do not.