The Perfect Moment to Buy a MONTAER: 100% Bonus Depreciation & Section 179
The perfect time to think about a business aircraft may be before you ever step into the cockpit.
What if an aircraft could become a powerful business tool—connecting you to clients, facilities and opportunities—while potentially allowing you to accelerate a substantial federal income-tax deduction? For qualifying business owners, today's depreciation rules make that question worth asking.
At MONTAER, we believe aircraft ownership should begin with the mission: where you need to go, who you need to bring, and what your time is worth. Potential tax treatment can make an already sensible investment more attractive. It should never be the only reason to purchase an airplane.
The Tax Opportunity: 100% Bonus Depreciation
Under changes to Internal Revenue Code Section 168(k), the United States restored 100% additional first-year bonus depreciation for eligible property acquired after January 19, 2025, subject to the applicable acquisition, placed-in-service and other rules. For a qualifying aircraft used in a trade or business, this may allow the eligible depreciable basis to be deducted in its first year of service, instead of recovered gradually over several years.
That is a deduction—not a tax credit, rebate, or discount from the aircraft purchase price. Its value depends on whether the owner can use the deduction against taxable income, and on the owner's actual circumstances. The benefit is accelerated timing, not a promise that buying an aircraft is free.
The restored federal provision does not presently have a scheduled annual phaseout. That makes careful mission and delivery planning more valuable than an artificial rush to sign before December 31.
Section 179: Another Tool for Business Investment
The Section 179 election may permit eligible taxpayers to expense qualifying business property in the year it is placed in service. For tax years beginning in 2026, the general maximum is $2,560,000, with a phaseout that begins when qualifying property placed in service exceeds $4,090,000. The deduction is also subject to business-income and other limitations.
Section 179 and bonus depreciation are distinct rules. They can interact, but the same dollars of aircraft cost cannot be deducted twice. A tax adviser should determine which approach, if any, is appropriate for a particular buyer.
A $400,000 Example: What Might Accelerated Depreciation Mean?
Consider a hypothetical $400,000 aircraft acquired for a legitimate business purpose. Assume, solely for illustration, that 80% of its cost is attributable to qualifying business use, that the entire $320,000 eligible basis qualifies for first-year depreciation, and that the deduction is fully usable by an owner whose applicable marginal federal income-tax rate is 35%.
Illustrative eligible depreciable basis: $320,000. Illustrative federal tax effect: up to $112,000.
These figures are simplified arithmetic—not MONTAER pricing, a buyer-specific tax projection or a promised tax saving. In practice, the qualifying business-use percentage, special aircraft tests, taxable income, passive-activity restrictions, at-risk rules, purchase structure, tax rate, state law and other factors may materially reduce, defer or eliminate the benefit. Deduction recapture may apply in later years.
Why a MONTAER Makes the Business Case More Interesting
Business aviation should not require a business jet. A right-sized aircraft may be a practical tool for qualified missions: traveling between facilities, meeting customers, supporting aviation operations or delivering flight training where authorized.
The MONTAER MC-01 offers two-seat efficiency for suitable owner-pilot, business and training missions. Its modern cockpit and efficient operating concept can be attractive to organizations seeking more useful hours from their travel budgets.
The MONTAER MC-04 brings four-seat flexibility for owners who need to carry additional passengers or accommodate a broader travel mission. It offers an opportunity to plan business aviation around the people and trips that matter most.
Neither model is automatically tax-deductible simply because it is titled in a company's name. What matters is the actual qualifying use and the taxpayer's documented eligibility.
The Critical Rule: Real Business Use, Properly Documented
Aircraft are subject to special federal tax rules. More than 50% qualified business use generally matters for accelerated depreciation, and certain aircraft must satisfy an additional 25% qualified-business-use test. Some trips that appear business-related may not count as qualified business use under these tests. Personal flying, commuting, entertainment, related-party and other uses can receive different treatment.
Owners should maintain complete, contemporaneous flight records identifying the date, route, passengers, business purpose and appropriate use classification. The tax treatment must be examined at the taxpayer level; ownership by an LLC or other entity alone does not determine eligibility.
The IRS depreciation guidance and Publication 946 explain the general rules. For aircraft-specific questions, we strongly recommend a CPA or aviation tax attorney familiar with Sections 168(k), 179 and 280F.
Timing Matters: Order Today, Plan for the Year of Service
For tax purposes, signing a purchase agreement or paying a deposit does not, by itself, place an aircraft in service or generate a depreciation deduction. The aircraft generally must be ready and available for its intended qualifying business use in the relevant tax year.
Factory production and delivery schedules must therefore be considered alongside the buyer's business plan. A projected delivery date is not a guarantee of a particular tax-year deduction, and purchasing decisions should never depend solely on an assumed tax result.
Placing an Order Is Simple
1. Choose your mission. Explore the MC-01 or MC-04 based on passengers, destinations, performance requirements and intended use.
2. Reserve your aircraft. Contact the MONTAER team to review availability, available configurations, purchase terms and the steps to secure a production position.
3. Coordinate with your advisers. Work with your CPA, aviation tax counsel and operational team to evaluate business-use documentation, ownership structure and the anticipated placed-in-service timeline.
The MONTAER team can explain aircraft features and the ordering process. We cannot determine your tax eligibility or guarantee any delivery-related tax outcome.
The Right Aircraft. The Right Mission. A Smarter Conversation.
A good aircraft investment creates real operational value. The possibility of first-year depreciation can make that value even more compelling—but only when the purchase and business use independently make sense.
Your next business investment could have wings. If aircraft ownership is already on your horizon, this is an excellent time to compare missions, explore the models and bring a qualified adviser into the discussion.
Important Tax, Legal and Purchase Disclosures
This article is general marketing and educational information only. It does not constitute tax, legal, accounting, financing or investment advice, and it is not an offer or guarantee of any tax treatment. MONTAER AIRCRAFT LLC, its affiliates and personnel are not acting as the reader's tax or legal advisers, do not verify individual eligibility, and make no representation or warranty that any aircraft purchase will qualify for Section 179, bonus depreciation, a specified tax saving, or any particular timing of a deduction.
Eligibility and outcomes depend on each buyer's acquisition and placed-in-service dates, actual qualifying business use, recordkeeping, ownership and financing structure, taxpayer status, taxable income, applicable aircraft-use tests, passive-activity and at-risk restrictions, federal and state law, and possible future recapture. Special depreciation rules and law may change. Prices, aircraft specifications, production slots and delivery estimates are subject to the applicable written purchase agreement and factory conditions. A reservation, deposit or aircraft purchase is not conditioned on achieving a tax benefit. Consult independent qualified advisers before making any purchase or tax-planning decision.
Official reference material: IRS — Additional First-Year Depreciation Guidance; IRS Publication 946 — How to Depreciate Property; IRS Topic No. 704 — Depreciation.
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