**Article Title:** Boosting Business Aviation Under the Trump Administration
Some folks in the private jet sector are throwing fits, claiming Trump's 25% tariff proposal will be the downfall of the U.S. aerospace industry. Let 'em keep their theatrics; it's entertaining. But there's a silver lining to share with the rest of us.
For newcomers, there'll be less salt from the teleprompter in future State of the Union addresses ranting about ending private jet tax breaks, courtesy of our new President who's an avid user of business aviation, before and beyond politics. Trump's beliefs in time savings, productivity, and security within the business aviation sphere are well-documented.
With tax concerns on the horizon, the IRS began giving business jet owners some extra attention in the form of targeted audits. Some saw it as an easy target for the cost of aircraft operation and the matching tax write-offs, while others saw it as just another weapon expanded from the Inflation Reduction Act of 2022, a massive piece of climate legislation. Either way, a possible reevaluation of aircraft owner IRS audits is on the horizon when Trump takes office.
Other tax-related items could also be up for review. Since bonus depreciation tax deductions have steadily decreased from their 100% heyday, the hope that they'd return to this level (at least) under a new regime is latent. Not to mention the current proposal of boosting business aviation fuel taxes fivefold could face some reconsideration.
With the U.S. possibly leaving the Paris Agreement, climate activism will ease up a bit. Fewer protesters will be painting business jets orange or gluing themselves to wings, and stockholder Environmental, Social, and Governance (ESG) activists pushing for a ban on private aviation will reduce in frequency.
Supporting the industry will be the appointment of new FAA and Transportation Secretary heads by the new administration. Additionally, changes in current government hiring practices will lead to a larger and more qualified candidate pool to tackle shortages in critical areas like air traffic controllers.
Now, regarding those 25% tariffs. Our more excitable friends might be on to something; a blanket 25% levy could harm the business jet sector. However, it's essential to remember that Trump's favorite tactic is starting high to seek concessions. A 25% figure is merely a negotiating ploy, nothing more.
Moreover, Trump wouldn't allow industries, like business jet makers, to be burdened with excessive costs by tariffs on raw materials such as aluminum and steel. Industrial heavyweights like General Dynamics' Gulfstream, which uses foreign-made engines, or companies like Cessna Textron that rely on Pratt & Whitney Canada engines, would not shoulder such costs.
The National Business Aviation Association (NBAA) underlines that business aviation generates around 1.2 million U.S. jobs and contributes a hefty $150 billion to our economy annually. It's illogical to think they'd intentionally weaken this industry with excessive tariffs.
Ultimately, it's presumed that the new administration will foster a more business-friendly environment for aviation, with tariffs imposed thoughtfully, considering strategic exemptions and discounts.
For those still panicking about the tariffs, maybe it's time for a quick breather.
The proposed 25% tariff on aviation-related goods could negatively impact the business jet sector, as cited by some. However, Trump's history of starting negotiations with high demands only to seek concessions suggests that this figure might be a negotiating tactic.
Major aviation companies like General Dynamics' Gulfstream and Textron, which rely on foreign-made engines, would be shielded from excessive tariffs on raw materials like aluminum and steel, according to Trump's approach.
It's unlikely that the new administration, which relies on the contributions of the business aviation sector, would intentionally impose tariffs that would weaken it, as stated by the National Business Aviation Association (NBAA).
The NBAA notes that business aviation is responsible for generating 1.2 million U.S. jobs and contributing $150 billion to the economy annually, making it an essential part of the country's infrastructure and economy.
