Company: AYR
Filing Date: 2025-10-09
Form Type: 10-Q
Source: 0001628280-25-044676
Chunk: 19

Company: Aircastle LTD
Filing Date: 2025-10-09
Form: 10-Q
Item: Part I, Item 1
Chunk 19
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 in the United States.  Our non U.S.-based aircraft-owning subsidiaries generally earn income from sources outside the United States and typically are not subject to U.S. federal, state or local income taxes. We have Irish, Singapore and U.S.-based subsidiaries that provide management services to our Bermuda, Irish and U.S. aircraft owning subsidiaries, which are subject to taxes in those respective jurisdictions.We recognized income tax provisions of $17.9 million and $12.6 million for the six months ended August 31, 2025 and 2024, respectively.  Our effective tax rate for the six months ended August 31, 2025 and 2024, was 14.5% and 22.4%, respectively.  The decrease in our effective tax rate is primarily attributable to the mix of profits between the various jurisdictions in which we operate, primarily driven by lower U.S. earnings and the utilization of Bermuda net operating losses.Ireland, Bermuda and U.S. Tax Law ChangesOn December 18, 2023, Ireland enacted Finance (No. 2) Bill 2023 (the “Finance Bill”) which includes legislative changes for new tax measures and amendments to the Irish tax code, such as provisions to implement the Pillar Two GloBE rules, new outbound payment rules, and a dividend withholding tax, among other changes.  The Finance Bill did not have a significant impact on our consolidated financial statements for the three and six months ended August 31, 2025.On December 18, 2023, Bermuda enacted the Bermuda CIT Act, which imposes the 15% Bermuda CIT that applies to Bermuda businesses that are part of multinational enterprise groups with annual revenue of €750 million or more and is effective for tax years beginning on or after January 1, 2025.  The Company has appropriately considered the impact of the Bermuda CIT and its impact on current and deferred income taxes.

18

Aircastle Limited and SubsidiariesNotes to Unaudited Consolidated Financial Statements(Dollars in thousands, except per share amounts)August 31, 2025

On July 4, 2025, the One Big Beautiful Bill Act (the “OBBBA”) was enacted into law in the United States.  The OBBBA introduces an increased tax deduction for interest expense and a 100% bonus depreciation on U.S. leased assets.  The Company does not anticipate these changes will have a material impact on its consolidated financial statements.

Note 12. Interest,