100 Percent Bonus Depreciation: The New Tax Advantage for Yacht Buyers

This past July, the President of the United States signed the One Big Beautiful Bill Act (H.R. 1) into law, restoring 100 percent bonus depreciation for qualifying business assets, including superyachts and private jets, that are placed into service after 19 January 2025.

How the tax incentive works: Under the restored bonus depreciation framework, qualifying buyers can expense the entire cost of a yacht in the first year it is placed into business use, rather than gradually depreciating that cost over multiple decades. In practical terms, this means owners can deduct the full purchase price from their taxable income for that year, provided the yacht is demonstrably used more than 50 percent of the time for legitimate business purposes, such as charter operations or corporate entertainment directly linked to business activities. 

​

The value of this deduction depends on the owner’s effective federal tax rate. For instance, if a buyer acquires a yacht for $10 million and qualifies for 100 percent bonus depreciation, they can deduct the full $10 million in the first year. If their effective federal tax rate is approximately 35 to 40 percent, this could reduce their tax liability by $3.5 to $4 million, as they are lowering their taxable income by the same amount. Put simply, while the owner does not receive a cash refund for the yacht’s cost, the upfront deduction reduces the amount of income subject to federal tax, freeing up capital that might otherwise have been paid in tax instalments over many years.

​

The yacht listings included in the 'Charter/Charter Ready Yacht Listings' section of this site's Main Menu are newly constructed or existing brokerage vessels that are, with exception to M/Y Spirit, domestically-built, either currently chartering or upon which a charter program can be established. These yachts are available for a limited time, as interest in bonus depreciation is accelerating.

​

The Team:

 

John Francis International will assist individuals with an interest in such a program, representing them and their best interests as the buyer’s representative and broker in the yacht’s transaction. John McCaughey will ensure the vessel is thoroughly inspected, surveyed, and a fair price is negotiated based upon current condition, maintenance records, comparable vessels, and fair market value. https://johnfrancisinternational.com

 

Reardon Yacht Consulting will assist with determining if considered vessels are suitable and regulatory compliant to be operated as a charter yacht. Michael Reardon will then orchestrate the full management of your vessel, ensuring the program meets the requirements of your expressed objectives. Reardon Yacht Consulting currently manages multiple bonus depreciation yachting programs. https://reardonyacht.com/

​

Robert Allen Law will provide legal assistance with yacht purchases, sales, financing, chartering, taxation, and bonus depreciation coordination and oversight. Robert Allen Law - Robert Allen Law

​

Azul Marine Lending will facilitate yacht financing solutions inclusive of individuals and LLCs for both personal use and charter. Greta and Zack Hamric specialize in providing yacht loans in the US, Puerto Rico, Latin America and Europe for yachts ranging from $1M to $45M. Loan Navigator 5.1 is their AI Underwriting System they developed that provides world class biometric security verifications and helps streamline a very complex process for their clients. AML will manage the financial controlling and reporting functions for the SuperYacht Program, ensuring compliance, accuracy, and efficiency. azulmarinefinance.com/#/home

 

Ocean Independence Charter Management will provide a dedicated member of the Yacht Charter Management Team, who will liaise closely with Reardon Yacht Consulting, the yacht’s owner or representative, as well as the yacht’s Captain, regarding charter opportunities and once a charter is confirmed, will manage the complex aspects of administration. As a Senior Charter Manager and Group Director with Ocean Independence, Daphne D’Offay is a widely respected presence in the yachting industry and has been chairperson of the International Yacht Broker’s Association (IYBA) Charter Professionals Committee for several years. Charter Management - Ocean Independence

​

Ocean Independence Charter Broker(s): Few charter brokers bring the depth of hands-on experience and personal touch that Mare Kidd offers. Mare has spent years refining the art of creating bespoke charter experiences for her clients. Her ability to anticipate client needs and exceed expectations has earned her a loyal following, with many returning year after year.

 

 

John McCaughey is the principal at John Francis International. John is a licensed and bonded yacht broker, credentialed USCG merchant mariner captain, yacht owner’s representative, and author of The Employment & Operations Handbook for Yacht Personnel. With more than 30 years of experience in risk, safety, and operational management across the maritime industry. John and his team act as yacht owner representatives, providing discreet, confidential consulting, always grounded in fiduciary duty, good faith, fair dealing, and common courtesy. While yacht-related fraud and mismanagement exist, John and his team are widely regarded as trusted yacht fraud and risk specialists, dedicated to protecting yacht owner interests.

 

Michael Reardon is the founder and CEO of Reardon Yacht Consulting. Michael is passionate about delivering a superior yachting experience through world-class yacht management services. With over two decades of experience in the maritime industry, Michael leads a team of seasoned experts who provide tailored solutions for yacht owners worldwide. RYC’s services cover every aspect of yacht management; from technical maintenance and crew recruitment to financial oversight and charter operations. Leveraging his experience, Michael’s background in marine engineering and hands-on yachting experience allows him to uniquely understand the specific needs of luxury yachts and their owners.

​

Accompanying this introduction are 5 years of financial accounting for a 2003, 130-foot charter vessel. As this accounting illustrates, a vessel of this age and size has an annual operating budget range between $2 million and $2.6 million. This vessel typically charters for $120,000 per week, of which approximately $96,000 is net to the yacht’s owner. A minimal goal of 12 weeks of charter would offset operating costs by approximately $1,152,000 ($96,000 x 12).