The One Big Beautiful Bill Act: A Game Changer for Yacht Ownership

Yachting International Radio
Sep 5, 2025
3 min read

When the One Big Beautiful Bill Act (OBBBA) passed through Congress this July, most headlines focused on restaurant tips and overtime pay. Yet buried in its 900 pages lies a seismic shift for the marine industry: the return of 100% bonus depreciation for charter yachts.

For buyers, that means the ability to write off the entire purchase price of a qualifying yacht in the very first year of ownership. For the industry, it means new energy, new buyers, and new urgency — because the opportunity exists only through 2029.

“Imagine buying your dream yacht and writing off the entire purchase before your first sunset cruise. It sounds too good to be true — but with OBBBA, it’s real.”

Beyond Sunset Cruises: The Law Behind the Lifestyle

At its core, OBBBA is designed to stimulate the economy by encouraging major purchases and business investment. For yachting, the legislation revives the 2017 Trump-era framework, which allowed owners to claim 100% depreciation in year one. After being phased down in recent years, the benefit is now back — and permanent, at least for the next four years.

But there’s a catch. The IRS will only accept the deduction if the yacht is run as a business, not a toy. That means proper structure, payroll employees, and evidence of charter activity.

“It has to look, smell, quack — everything like a business. The IRS isn’t fooled by yachts disguised as hobbies.”

What Qualifies as a Business Yacht?

There’s no minimum size requirement. A 40-foot center console can qualify just as well as a 200-foot superyacht — provided it’s demonstrably operated as a charter business. Key markers include:

Ownership through a corporation or appropriate legal entity
Employees on payroll (not 1099 contractors)
Business licenses and documentation
Crew and charter records showing the vessel was available for hire

If a yacht is US Coast Guard documented, it can operate anywhere and still qualify. If flagged elsewhere, it must generate its charter income in US waters to remain eligible.

“The IRS doesn’t care how big the boat is. What matters is whether it’s run like a business.”

The Record-Keeping Burden

If the incentive sounds generous, that’s because it is. But the IRS won’t hesitate to scrutinize it. Owners must be meticulous in record-keeping: corporate governance documents, crew contracts, charter listings, valuations, and even the hours spent preparing the business plan.

As Umberto Bonilla of Robert Allen Law explains, the right team is essential: yacht broker, yacht attorney, CPA, tax lawyer, charter broker, and often a yacht management company. Each piece ties together to prove the yacht is not a pastime but an enterprise.

“Knowledge is power — and in this case, it’s your best crew member.”

New Buyers, New Momentum

The legislation is already sparking a surge in first-time buyers. Family offices and high-net-worth individuals who had never considered yachting are calling legal teams to explore the deduction. At the same time, seasoned owners who sat on the sidelines are stepping back in, seizing the tax advantage.

Boat shows from Monaco to Fort Lauderdale are expected to feel the momentum. Brokers anticipate renewed energy on the docks, with prospective clients asking not just about layouts and cruising ranges, but about eligibility under OBBBA.

“This is going to hook people into yachting. And once you’re hooked, you’re hooked for life.”

A Strong Buy for the Industry

For the administration, OBBBA is about economic growth. For the marine sector, it’s a fresh tide of investment, jobs, and charter activity. The opportunity, however, is finite: the clock runs out in 2029.

For yacht owners — or those who dream of becoming one — the message is clear. With the right structure, the right team, and the right record-keeping, OBBBA can transform a purchase into a powerful tax strategy.