LIFE BEYOND FIRST CLASS
FINANCE
FULL THROTTLE
INVESTMENT
With 100% bonus depreciation reinstated under the
One Big Beautiful Bill Act, business-qualified yachts now
offer owners powerful new opportunities for tax efficiency, capital preservation, and lifestyle expansion.
MICHAEL SPEED
PHOTOGRAPHY: JEFF BROWN
For ultra-high-net-worth individuals and business owners with a taste for open water, the latest development out of Washington quietly rewrites the rulebook on maritime asset strategy. The recently signed One Big Beautiful Bill Act (OBBBA) has permanently reinstated 100% bonus depreciation for qualifying business assets, including yachts, offering a powerful incentive for those navigating both ocean and balance sheet.
Under the new legislation, effective for new and used yachts placed into service after January 19, 2025, owners using the vessel for a bona fide business purpose may immediately depreciate the entire cost of the asset in the first year. That means a multi-million-dollar yacht can now deliver a first-year deduction equal to its full purchase price, creating substantial tax savings and freeing up liquidity for reinvestment.
To qualify, the yacht must be used in a legitimate business capacity: charter operations, fractional ownership programs, or company related travel are common examples. Personal use must be minimal and well documented. For those already employing aviation tax strategies with private aircraft, the yacht version is not so different, only wetter.
This is not a loophole. It is legislative intent aimed at encouraging investment, stimulating luxury industries, and recognizing the economic impact of high value asset deployment. For businesses built around mobility, hospitality, or high-end services, a yacht is no longer just a lifestyle statement; it is a balance sheet tool.
From a finance perspective, the implications are significant. A yacht that might once have required years of amortization can now deliver immediate tax offset. Paired with intelligent financing, such as interest-only periods or asset-based lending, buyers can dramatically reduce their effective cost of acquisition. The result is a faster ROI timeline and a more agile ownership profile.
Family offices and wealth advisors are already taking note. When deployed strategically, 100% bonus depreciation does more than lower tax liability. It becomes a timing instrument, allowing clients to align large purchases with high income years, capital gains events, or windfalls. In jurisdictions with high effective tax rates, the savings can easily run into seven figures.
Of course, with opportunity comes scrutiny. As with all tax advantaged strategies, compliance is paramount. Owners must be prepared to document business intent, maintain usage logs, and consult maritime and tax counsel in advance of acquisition. Done right, the benefits are robust. Done sloppily, and the IRS may come knocking.
Yachts vs Jets:
Bonus Depreciation
AIRCRAFT:
• Must be used for business travel or charter
• High regulatory scrutiny from FAA and IRS
• Bonus depreciation typically used alongside Part 91/135 operations
• Logbooks and flight plans essential for audit defense
YACHTS:
• Must serve a legitimate business purpose (charter, client use, fractional ownership, etc.)
• More flexibility in usage documentation, but increased scrutiny expected
• Bonus depreciation applies equally to new and used vessels
• Logbooks, charter schedules, and usage logs strongly recommended
For yacht brokers and builders, the OBBBA’s passage is expected to buoy demand, particularly for inventory that can be customized for business forward functionality. Expect a wave of interest from professionals in entertainment, consulting, tech, and luxury services, where clients facing travel and hosted events aboard a yacht satisfy both brand and business objectives.
There is also a macroeconomic angle. By treating yachts as productive business assets, the legislation supports U.S. shipyards, crew staffing, marine service providers, and coastal economies that rely on the luxury yachting ecosystem. It is, in effect, a stimulus that floats.
Looking forward, savvy investors are likely to view this as an inflection point. While bonus depreciation was originally introduced under the Tax Cuts and Jobs Act and scheduled to phase down, OBBBA restores it as a permanent fixture, bringing long term confidence to high value asset planning. For those with liquidity, vision, and legitimate business use, the horizon looks favorable.
In a world where timing is everything and tax structures are increasingly complex; the yacht is no longer just a toy. It is a tool. And with the stroke of a legislative pen, it has just become one of the most tax efficient assets in the luxury landscape.
To explore qualifying strategies, consult your tax attorney or wealth advisor. Documentation, intent, and smart structuring remain key to smooth sailing.
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