In an uncertain and volatile macroeconomic environment, it may not be surprising that some businesses are holding off on making significant investments in assets. But for those that may be considering purchasing a private aircraft, 2026 presents a compelling opportunity to act, especially with favorable tax and financing conditions in place.
“While there’s no doubt that buying a private aircraft is a big decision, it’s good to know that potential buyers have an opportunity through the tax legislation that passed in 2025 with the One Big Beautiful Bill Act. With the reinstatement of 100% bonus depreciation, buyers may be able to deduct the entire cost of an aircraft purchase made in 2026 and significantly reduce their tax liability,” said Ramy Sidhom, head of PNC Aviation Finance. “This is expected to drive increased market activity, and since aircraft purchases are complex and time-consuming, waiting too long could mean missing the window to close by year end.”
For many businesses, the decision to hold off on purchasing an aircraft has had to do with ongoing low inventory levels. While there is a growing inventory of some older, out-of-production aircraft, inventory levels for current production of younger aircraft remain considerably low. Backlogs are very long for new aircraft, with buyers signing contracts for airplanes that may not be delivered until two or three years later. Meanwhile, the introduction of tariffs is inserting additional considerations into the market, as they may lead to lower aircraft import levels.
Interest rates have also played a role in buyer evolving considerations. But the landscape has shifted. “Rates have come down and are now more attractive,” said Keith Hayes, national sales manager at PNC Aviation Finance Current finance rates are good and are anticipated to remain stable, so it’s an opportune time to move forward.”
Given the timeline and complexity involved in buying a private aircraft, starting the process as soon as possible is key, according to Sidhom. “Part of this means building the team you will need to ensure a smooth acquisition and closing right from the start. Since an aircraft is a specialized asset and all aspects of it are specialized, it’s important to engage with an aviation attorney and a certified aviation broker. Buyers also need to be sure to consult an aviation tax specialist for counsel on what they should do, and also not do, in order to fully leverage the bonus depreciation, if that is a factor for them,” said Sidhom. “Last, but just as important, is that they need to establish a banking relationship with specialists, such as those on our PNC Aviation Finance team, that can help them structure the right financing.”
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Descubra cómo Financiamiento para aviación de PNC ayuda a hacer de la propiedad de una aeronave privada una realidad. Reach out to your relationship manager, or contact us.
