IYC Insights: Why Now Is The Smartest Time For American Buyers To Invest In Yacht Ownership
Yacht ownership has endless advantages, but one in particular is the potential financial benefits it can bring, particularly for clients who place their yacht into charter operations. And, for American buyers, there has never been a better time to do so. With potential legislative changes in flux and shifting trade dynamics, now is an exceptionally strategic time to consider purchasing a yacht.
Staying informed about tax codes, depreciation opportunities, and charter regulations is an essential element when looking to minimize tax liability and maximize returns on investment. But, as always, it is necessary to consult a qualified tax professional on these matters. At IYC, our expert consultants are happy to connect you with trusted experts who can help outline your obligations and structure your purchase to ensure compliance with all relevant requirements.
Here, we outline the key advantages of buying a US-built or US Duty Paid yacht, potential legislative changes, and how there is a crucial window of opportunity for buyers that we recommend you explore before it's too late:
The Advantages Of Buying American
When strategically purchased and managed, charter yachts can serve as impactful financial tools. One standout advantage of buying a US-built yacht or US Duty Paid yacht is the ability to bypass import duties that typically apply to foreign-built yachts brought into the US
In April 2025, new trade measures introduced a universal 10% baseline tariff on imports, with some foreign-built yachts facing duties of up to 25%, depending on the country of origin and vessel classification. In contrast, American yacht builders remain exempt, offering domestic buyers significant pricing advantages.
"We are currently seeing a strengthening demand for US-built yachts among American buyers, notes IYC Sales Consultant Josh Marshall. "The elimination of import fees, potential freight delays, and duties for American-made vessels is a significant advantage. Additionally, pricing on the brokerage market for the US-built yachts feels more realistic at the moment," he adds.
Simply put, choosing a US-built yacht or a foreign-built yacht with US Duty Paid status eliminates the layers of additional costs and logistics, streamlining transactions to be quicker and more cost-effective.
The Tax Incentives
For U.S. buyers considering placing a yacht in a charter program, tax benefits, and deductions can significantly offset the cost of ownership. Since 2017, US tax policy has allowed for 100% bonus depreciation on yachts placed into charter, a provision that has phased down to 40% this year. However, proposed legislation currently moving through Congress aims to reinstate 100% bonus depreciation retroactively to 20 January 2025, with hopes of this passing in the beginning of July.
"Accelerated depreciation has been a huge asset for American yacht buyers over the past several years," explains Sales Consultant and Managing Partner IYC California, Matthew Stone. "If the bill passes, buyers could potentially deduct 100% of a yacht's purchase price in the first year, as long as it's placed into a qualifying charter service."
Such a provision would dramatically reduce the effective cost of ownership, providing those who act quickly and qualify with a mechanism for maximizing tax savings and significantly reducing ownership costs.
Charter As A Smart Ownership Strategy
"Placing a yacht into charter can significantly enhance the financial viability of yacht ownership for US buyers through a combination of tax benefits and the income generated from charter activities," explains Marshall. However, it is important to note that not every yacht qualifies, and specific figures will depend on individual circumstances.
US tax law requires strict compliance with regulations, such as the physical presence test, which means the yacht must be in American waters and available for charter. Additionally, it mandates at least one third-party charter within the year, allowing for accelerated depreciation to be claimed.
This is where the right yacht, program, and timing matter most. Stone adds: "Buyers tapping into this potential depreciation need to be planning now. Ideally, they should be looking at yachts with an existing charter following, making it easier to meet the qualification, especially of having to comply with conducting at least one third-party charter in the year you use accelerated depreciation." IYC's charter and yacht management teams are well-versed in guiding owners through this process, helping them structure ownership and operational plans to maximize benefits.
Among notable current charter yachts for sale in the IYC fleet is the 100'2 (30m) SEA N SEA. The Ocean Alexander yacht is already an established charter favorite, known for shallow draft and versatility in popular charter destinations like the Bahamas. Similarly, the 161'1" (49m) CARTE BLANCHE, built by Christensen, is a proven performer in the charter market, with strong charter demand, a type of asset that can benefit quickly from proposed tax incentives.
Demand For US-Built
The combination of proposed tax legislation and shifting trade policies has increased domestic interest in American yacht builders. Established US shipyards, such as Westport, Trinity, Delta, and Burger, have long been respected for producing durable yachts with superior craftsmanship, timeless styling, reliable performance, and customization. Marshall notes that American-built vessels have "a strong reputation for producing durable and highly customizable yachts." While Stone agrees and adds: "US shipyards are known for yachts built on series, purposefully built on performance."
Recent brokerage activity reflects this trend, and the market is responding accordingly. Stone points to a notable uptick in activity for popular series builds, such as the Westport 112, with three sold in 2025 already and three of the 50m Westports in 2024|2025. "The surge in US or US Duty Paid yachts is going to continue to strengthen, especially if tariff conversations continue," he adds. Among current opportunities for sale is the newly listed Westport 112 (34m) FIRST LIGHT, the first US-delivered Westport 112 featuring the new extended transom design.
Refitted brokerage options are also turning heads. Highlights for sale include the comprehensively modernized 107'4" (33m) SILVER SEAS by Burger, the turnkey 149'11" (46m) STEALTH, and the 2024-refitted LA DEA II, a 160'9" (49m) Trinity known for its world-cruising status and expansive sundeck.
Why You Should Act Now
Between proposed legislative incentives, trade benefits, and increased domestic demand, the current market presents a prime opportunity for US buyers, especially those considering placing their yacht in a charter program.
If you are looking for a proven charter yacht or a newly refitted build, our team of expert consultants can guide you through the process. Contact our sales consultants today to explore available listings and discover how to capitalize on this pivotal moment in the US market.