When a business buys an aircraft — for transportation, charter, or another commercial purpose — the financing and tax picture changes. The buyer is often an entity, lenders may underwrite on business financials, and depreciation can be a major factor. This guide covers how business aircraft financing works and what to consider.
Key takeaways
- The buyer is often an entity (LLC or company), which affects underwriting and liability.
- Lenders may use business financials and a debt-service-coverage view rather than personal debt-to-income.
- Depreciation can be significant for qualified business-use aircraft — but rule-bound.
- Intended operation matters — Part 91 (private) vs. Part 135 (charter) changes the deal.
Entity Structures & Underwriting
Business buyers commonly hold the aircraft in an LLC or company for liability and administrative reasons. Lenders will typically want business financials — returns, statements, and sometimes a debt-service-coverage analysis — alongside personal guarantees, depending on the entity's strength. The right structure depends on your tax situation, how the aircraft is operated, and state sales-tax considerations. Our LLC & business financing guide compares the common structures (personal vs. single-member LLC vs. single-purpose entity).
Depreciation & Tax
Aircraft used more than 50% for a qualified business purpose may be eligible for accelerated depreciation, including Section 179 expensing and bonus depreciation. Under the 2025 One Big Beautiful Bill Act, 100% bonus depreciation was made permanent for property placed in service after January 19, 2025 — a powerful but rule-bound benefit that depends on your business-use percentage and how the aircraft is operated. This is not tax advice: work with a qualified aviation CPA. Our bonus depreciation & Section 179 guide explains the current rules and the IRS covers depreciation in Publication 946.
Part 91 vs. Part 135 & Operations
How you operate the aircraft shapes the financing and insurance. Part 91 covers private, non-commercial operations; Part 135 covers charter and requires a certificate, added maintenance, and different insurance. If the aircraft will generate charter revenue or support a flight department, tell the lender up front — they may underwrite on the operation's cash flow and will want the management and utilization plan documented.
Rates, terms, and figures in this article are illustrative examples for the 2026 market and are not offers of credit. Jaken Aviation is a licensed aircraft financing brokerage — a division of Jaken Finance Group — and does not make loan decisions. All financing is subject to lender approval. Tax information is general and not a substitute for advice from a qualified CPA.
Frequently Asked Questions
Should I buy an aircraft through an LLC?
Many business buyers do, for liability and administrative reasons, but the right structure depends on your tax situation, operations, and state sales tax. Review it with a CPA and see our LLC financing guide.
Can my business deduct the aircraft?
Aircraft used more than 50% for a qualified business purpose may be eligible for Section 179 and bonus depreciation, scaled to business-use percentage. The rules are specific — consult a qualified aviation CPA.
How do lenders underwrite a business buyer?
Often on business financials and a debt-service-coverage view, sometimes with personal guarantees, depending on the entity's strength and how the aircraft is used.
Does charter (Part 135) use change financing?
Yes. Charter operations change insurance, maintenance, and lender expectations, and lenders may underwrite on the operation's cash flow. Be upfront about intended use.
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