Key Takeaways
• House passes budget bill allocating $12.5 billion to airport and air traffic control modernization.
• Bill restores 100% immediate expensing for aircraft purchases and extends sustainable aviation fuel credits.
• NBAA and Modern Skies coalition support bill to boost jobs, safety, and U.S. aviation leadership.
On May 22, 2025, the National Business Aviation Association (NBAA) publicly praised the U.S. House of Representatives for passing a budget reconciliation bill packed with provisions that directly benefit the business aviation sector. This legislative milestone marks a pivotal moment for the industry, promising new investments in airport infrastructure, air traffic control modernization, tax incentives for aircraft purchases, and support for sustainable aviation fuel (SAF) production. The NBAA, along with a broad coalition of aviation stakeholders, views this House passage as a crucial step toward strengthening the United States 🇺🇸 position as a global leader in business aviation.
What Happened: House Passes Business Aviation-Friendly Budget Bill
The U.S. House of Representatives approved a comprehensive budget bill that includes several measures designed to support and advance business aviation. The NBAA, which represents thousands of companies and professionals in the sector, immediately welcomed the news. According to NBAA President and CEO Ed Bolen, the bill “recognizes the importance of improving ATC infrastructure and strengthening the controller workforce to enhance safety and efficiency in the National Airspace System.”
The bill’s passage comes at a time when the aviation industry is calling for urgent upgrades to aging infrastructure and new policies to keep pace with global competition. The NBAA’s endorsement signals the industry’s confidence that these legislative changes will have a positive impact on business aviation, job creation, and the broader U.S. economy.
Why This Bill Matters for Business Aviation
The budget bill is not just another piece of legislation—it’s a package of targeted measures that address some of the most pressing challenges facing business aviation today. Here’s why the NBAA and its allies are so enthusiastic about the House passage:
- Major funding for airport and air traffic control modernization
- Restoration of key tax incentives for aircraft buyers
- Extension of critical credits for sustainable aviation fuel
- Broad industry support through the “Modern Skies” coalition
- Potential to create and sustain high-paying jobs across the country
Let’s break down each of these elements and explain how they affect business aviation, the economy, and the future of U.S. leadership in the skies.
Bill Highlights: What’s in It for Business Aviation?
$12.5 Billion for Airport and Air Traffic Control Upgrades
One of the most significant features of the House-passed bill is the allocation of $12.5 billion over four years for airport and air traffic control (ATC) projects. This funding will be used to:
- Replace outdated radar systems with modern technology
- Upgrade and rebuild control towers across the country
- Improve terminal radar approach control (TRACON) facilities
- Expand recruitment and training programs for air traffic controllers
These investments are designed to address long-standing issues with aging infrastructure and a shortage of qualified controllers. For business aviation operators, these improvements mean safer, more efficient flights and fewer delays.
Example: Imagine a business jet flying from Dallas to New York. With modernized radar and better-staffed control towers, the flight is less likely to encounter delays or communication problems, saving time and money for both the operator and the passengers.
Restoration of 100% Immediate Expensing for Aircraft Purchases
Another headline provision is the restoration of 100% immediate expensing for both new and pre-owned business aircraft. This tax incentive, which was originally included in the Tax Cuts and Jobs Act of 2017, had been scheduled to phase out by 2027. The new bill would bring it back, allowing companies to deduct the full cost of an aircraft purchase in the year it is made.
Why is this important? Immediate expensing encourages businesses to invest in new equipment, including aircraft, by reducing the upfront cost. This can be especially helpful for small and medium-sized companies that rely on business aviation to reach clients, transport teams, or deliver goods quickly.
Ed Bolen of the NBAA points out that this policy “has been included in bipartisan congressional tax policy for decades” and is widely recognized as a way to help American companies stay competitive in the global market.
Example: A small manufacturing company in Ohio needs to upgrade its aging business jet to keep up with client demands. With immediate expensing restored, the company can purchase a newer, more efficient aircraft and deduct the entire cost from its taxes in the same year, freeing up cash for other investments and growth.
Extension of Sustainable Aviation Fuel (SAF) Incentives
The bill also extends the Section 45Z Clean Fuel Production Credit for an additional four years, through 2031. This credit is a key driver of sustainable aviation fuel (SAF) production in the United States 🇺🇸.
- SAF production doubled in the U.S. from December 2024 to February 2025, thanks in part to this credit
- The credit is considered “critical to the increased production, availability and use of SAF”
- Supports the business aviation industry’s goal of achieving net-zero carbon emissions by 2050
By making SAF more affordable and widely available, the bill helps business aviation operators reduce their environmental impact and meet growing demands from clients and regulators for greener operations.
Example: A corporate flight department in California wants to lower its carbon footprint. With the extended SAF credit, the cost of using sustainable fuel drops, making it easier for the company to switch from traditional jet fuel to SAF and demonstrate its commitment to sustainability.
Industry-Wide Support: The “Modern Skies” Coalition
The NBAA is not alone in supporting the House-passed bill. More than 50 aviation stakeholders have joined forces in the newly formed “Modern Skies” coalition. This group includes:
- International aviation associations
- Trade unions representing pilots, controllers, and maintenance workers
- Aircraft manufacturers
- Other aviation industry organizations
The coalition was created specifically to advocate for the ATC modernization plan outlined in the bill. By presenting a united front, the industry is sending a clear message to lawmakers: investing in aviation infrastructure is essential for safety, efficiency, and economic growth.
Example: The coalition’s support means that both large airlines and small charter operators, as well as the workers who keep planes flying, are all pushing for the same upgrades. This broad backing increases the chances that the bill’s provisions will become law.
Economic Impact: Business Aviation’s Role in the U.S. Economy
The NBAA has long emphasized the economic importance of business aviation. According to the association:
- The industry supports 1.3 million high-skill, high-paying jobs in manufacturing, maintenance, operations, and services
- Business aviation contributes $340 billion in annual economic activity
- The sector makes a positive contribution to the nation’s balance of trade by exporting aircraft and services
These numbers highlight why the NBAA and its allies are so invested in the bill’s passage. By supporting business aviation, Congress is also supporting American jobs, innovation, and economic growth.
Example: A maintenance facility in Wichita, Kansas employs hundreds of skilled workers who service business jets from around the world. The continued health of the business aviation sector means steady work and good wages for these employees and their families.
How the Budget Process Works: Reconciliation and Its Importance
The budget bill passed by the House is part of the larger congressional budget process for fiscal year 2025. Earlier, the House approved a budget resolution (H.Con.Res.14) that set spending levels for the next decade and provided instructions for reconciliation.
What is reconciliation? It’s a special process that allows certain budget-related bills to move quickly through Congress. In the Senate, reconciliation bills can’t be filibustered, and amendments are limited. This makes it easier for lawmakers to pass important funding measures, like those for aviation infrastructure, without getting bogged down in political gridlock.
Example: In the past, major tax and spending bills—including those affecting Social Security, Medicare, and the Affordable Care Act—have been passed using reconciliation. The current aviation-friendly bill is following a similar path.
For more details on the U.S. budget process and reconciliation, readers can visit the official Congressional Research Service page.
Historical Context: NBAA’s Ongoing Advocacy for FAA Funding
The NBAA’s support for this bill is part of a long-standing effort to secure stable funding for the Federal Aviation Administration (FAA) and the broader aviation system. In 2018, for example, the NBAA welcomed an omnibus spending bill that provided $18 billion for the FAA—an increase of $1.6 billion over the previous year.
These advocacy efforts reflect the NBAA’s belief that consistent investment in aviation infrastructure is essential for safety, innovation, and economic competitiveness.
Example: When Congress increases FAA funding, airports can repair runways, upgrade navigation systems, and improve security, all of which benefit business aviation operators and their passengers.
What’s Next: Senate Consideration and Industry Advocacy
While the House passage is a major victory, the bill must still be considered by the Senate before it can become law. The NBAA and the “Modern Skies” coalition are expected to continue their advocacy, urging Senators to support the bill’s aviation provisions.
The timing is critical. With air traffic volumes rising and technology evolving rapidly, the need for modern infrastructure and policies has never been greater. The outcome of the Senate debate will determine whether the U.S. can maintain its leadership in business aviation and continue to provide safe, efficient, and sustainable air travel.
Example: If the Senate approves the bill without major changes, airports and ATC facilities could begin receiving new funding as early as next year, accelerating long-overdue upgrades and improvements.
Practical Guidance for Business Aviation Stakeholders
For business aviation operators, manufacturers, and service providers, the House passage of this bill offers several practical opportunities:
- Plan for new aircraft purchases: With immediate expensing likely to be restored, companies considering buying or upgrading aircraft should consult with tax advisors to maximize benefits.
- Prepare for infrastructure improvements: Airports and operators should monitor FAA announcements for new funding opportunities related to tower upgrades, radar replacements, and controller training.
- Explore SAF options: With the SAF credit extended, operators can work with fuel suppliers to increase their use of sustainable fuels and meet client or regulatory requirements for lower emissions.
- Stay engaged with advocacy efforts: Industry professionals can join NBAA and other coalition members in supporting the bill as it moves through the Senate.
For official information on business aviation regulations and updates, readers can visit the Federal Aviation Administration’s Business Aviation page.
Conclusion: A Turning Point for Business Aviation
The House passage of this budget bill marks a turning point for business aviation in the United States 🇺🇸. With billions in new funding, restored tax incentives, and extended SAF credits, the industry is poised for growth, innovation, and greater sustainability. The NBAA’s leadership, along with the broad support of the “Modern Skies” coalition, demonstrates the sector’s unity and determination to secure a bright future.
As the bill moves to the Senate, business aviation stakeholders should remain informed and proactive. According to analysis by VisaVerge.com, the outcome of this legislation will shape the industry’s trajectory for years to come, affecting jobs, investment, and the nation’s standing in global aviation.
Action Steps:
– Monitor Senate proceedings and advocacy updates from NBAA
– Consult with financial and legal advisors about potential tax benefits
– Engage with industry groups to support continued investment in aviation infrastructure
By staying informed and involved, business aviation professionals can help ensure that the benefits of this landmark legislation are fully realized for their companies, employees, and the broader U.S. economy.
Learn Today
Budget Reconciliation → A fast-track congressional process limiting debate and amendments to pass budget-related bills quickly.
Immediate Expensing → Tax provision allowing full deduction of an aircraft’s purchase cost in the year of acquisition.
Sustainable Aviation Fuel (SAF) → Environmentally friendly fuel made from renewable resources to reduce aviation’s carbon footprint.
Air Traffic Control (ATC) → A service that manages aircraft movements to ensure safe, orderly, and efficient airspace use.
Modern Skies Coalition → A group of over 50 aviation stakeholders advocating for modernization of the U.S. air traffic control system.
This Article in a Nutshell
The U.S. House approved a budget bill critical for business aviation, providing $12.5 billion for infrastructure upgrades, tax incentives for aircraft purchases, and extended sustainable fuel credits, signaling strong industry support for safer, more efficient skies and economic growth in the sector.
— By VisaVerge.com
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