The National Aircraft Resale Association (NARA) said the recently enacted U.S. tax law—which allows 100 percent bonus depreciation for new and preowned aircraft and lowers corporate taxes and effective pass-through rates—will help the business aviation industry turn the corner this year. Bonus depreciation allows for an immediate tax deduction of the cost of any business aircraft—meaning one used predominantly for business purposes—acquired and placed in service by Jan. 1, 2027.

“Our NARA-certified brokers have recognized a change in the marketplace just in the first few months of 2018 since the U.S. tax reform was enacted,” said NARA chairman Brian Proctor. “The market is generating more activity and demand, and that is likely to increase as the economy continues to heat up, interest rates rise, and most indicators point to a general economic upturn.”

While political and economic developments around the world can influence the market, “Now is a great time to buy an aircraft before prices increase,” he continued. Proctor noted that preowned aircraft in excellent condition are selling at a faster pace than in past years.