Click on the article title below to be taken directly to the article. After you’re done reading the article, click “Back to Top” at the bottom to be brought back to the Table of Contents.
Table of Contents
The ‘One Big Beautiful’ Tax Bill’s Effects on the Agricultural Aviation Industry
On July 4, 2025, President Trump signed H.R. 1—dubbed the One Big Beautiful Bill Act (OBBBA)—enacting significant modifications to the United States tax code ranging from increasing bonus depreciation amounts to scaling back clean‑energy credits—both of which affect the agricultural aviation industry. One provision that might benefit aerial application businesses is an increase in the state and local taxes, or SALT deduction. Starting this year through tax year 2029 individuals earning less than $500,000 will be able to deduct $40,000 of SALT increasing 1% annually through 2029, then reverts to $10,000. Owners of pass-through businesses like S corporations and partnerships, whose business income passes through to their individual returns, will still be able to use workarounds available to effectively get unlimited SALT deductions. A business owner who has $1 million in business income and pays $60,000 in state income taxes could deduct that full amount, for a tax savings of about $22,000.
H.R. 1 also alters clean‑energy tax incentives for solar and wind power under the Inflation Reduction Act of 2022 (IRA). Currently, a production tax credit of 0.3 ¢ per kWh exists for electricity generated by zero‑emitting facilities for ten years after they’re placed in service. Under H.R. 1, wind and solar projects must be placed in service by December 31, 2027 to claim this credit. Wind and solar projects starting on January 1, 2025, until July 4, 2025 (i.e., the date of enactment) will also receive credits at the full rate.
Regarding the estate and gift tax, the bill institutes a permanent (and inflation-adjusted) exemption level of $15 million beginning in 2026 for single filers and $30 million for joint filers.
The bill also provides a permanently higher threshold for expensing certain equipment for smaller businesses (Section 179 expensing). In other words, bonus depreciation is back to 100%, but only for assets placed in service in 2025 through 2030. H.R. 1 expands the expensing cap to $2.5 million under Section 179 with phaseout beginning at $4 million and permanently restores 100% bonus depreciation for short-lived assets, including immediate expensing for domestic R&D; retroactive to 2021 for small businesses.
Be sure to contact your accountant for exact details on the changes in tax law as a result of H.R. 1 OBBA.
NAAA Booth Sales Open Today
Booth sales for the 2025 Ag Aviation Expo in Reno, Nov. 17-19, begin today at 12 p.m. ET. View pricing and the booth purchase directions here. You are required to log in to the NAAA website to purchase booth space. Please ensure you know your username and password by 12 p.m. ET today.
The NAAA Trade Show will take place Nov. 18, 12 p.m.–5:30 p.m. and Nov. 19, 9:30 a.m.–3:30 p.m. The full schedule of events is available here.
In addition to attending the NAAA Ag Aviation Expo, explore Reno. The city is a fast-growing city that offers numerous dining and libation options. The Midtown District is home to many local bars with live music, offering local artists’ murals and each offers a unique atmosphere. For naturalists and skiers, nearby Lake Tahoe is well worth a trip. Explore the area at www.visitrenotahoe.com.
NAAA Submits Comments to EPA to Fight for Aerial Applications of Two New Herbicides
Earlier this week NAAA submitted two letters to the EPA with comments regarding the proposed registration of two new herbicides, diflufenican and trifludimoxazin. Diflufenican is a preplant and preemergence herbicide intended to provide control of waterhemp, Palmer amaranth, and other pigweed species. It will be labeled only for corn and soybeans, but aerial application will not be allowed. NAAA objected, acknowledging that while aerial applications of preplant and preemergence herbicides are not common, there are times when wet soils prevent growers from using ground rigs. In those situations, aerial application is an essential tool growers rely on to provide timely and effective control of weeds. NAAA’s comments on diflufenican can be read here.
Trifludimoxazin is a new contact herbicide which will provide control of both broadleaf and grassy weeds. It is labeled for aerial use on all labeled crops except peanuts and tree crops. NAAA agreed with the aerial drift mitigation requirements including droplet size, boom length, wind speed, and swath displacement. NAAA also agreed with the buffer zone requirements to protect endangered species, but did request that a 50 percent boom be added to the list of mitigations that can be used to reduce the buffer distance. NAAA objected to the prohibition of aerial applications of trifludimoxazin on peanuts and tree crops, stating that these growers should not be denied access to aerial applications. Click here to read NAAA’s comments on trifludimoxazin.
Beware of Fraudulent Email Using NAAA Officer Names
NAAA received notification that scammers have sent an email from NAAA President Mike Rivenbark to several members that is titled, “Assistance with vendor payment.” The email states that Sue Stewart [2025 NAAA Treasurer] is out of the office and asks for assistance in using a third-party payment vendor (i.e. PayPal, Zelle, etc.). AS THE SENDER’S EMAIL ADDRESS ATTESTS, THIS IS NOT FROM PRESIDENT RIVENBARK OR THE NAAA. IT IS SPAM; PLEASE DELETE.
An NAAA officer will never contact you about an NAAA payment; only staff will contact members regarding NAAA payments. If you are unsure of an email’s legitimacy from NAAA, please feel free to email information@agaviation.org for clarification. Any message from the NAAA will come directly from NAAA with the “@agaviation.org” lettering, such as information@agaviation.org or a staff member’s email address (i.e. lbarber@agaviation.org).
This is one of many entities trying to scam people by having them give money toward fraudulent efforts. Do not fall victim to one of these scams. Also note, no one from (or on behalf of) the Atlantis hotel or NAAA will contact you to book a hotel room for the Ag Aviation Expo. NAAA recommends that you make your own hotel reservations using the information that we provide to you. Do not book a room with any company that calls you directly. You may also receive spam emails to purchase lists from NAAA; this is spam and NAAA does not solicit selling lists of attendees/visitors.
In Case You Missed Last Week’s NAAA eNewsletter
Click here for the July 3, 2025 eNewsletter to read:
- FAA Proposed Rule on Drones Operating Beyond Visual Line of Site Expected Imminently, Speculation of Content Worrisome
- NAAA’s Fly Safe Message Again Gains National Exposure in VAI Daily
- July is Ag Aviation’s Busiest Month for Hours and Accidents, Brush Up on Your Fly Safe Messages
- Beware of Fraudulent Email Using NAAA Officer Names