Aircraft in British Columbia
A British Columbia corporation buying aircraft and aviation equipment on or after September 15, 2026 can deduct 100% of the cost in the year the property is available for use. Combined tax rates in British Columbia: 11.0% on small business income and 27.0% at the general rate.
Does British Columbia follow the federal rule? Follows the federal rule British Columbia calculates corporate tax on the federal tax base, so the federal deduction would flow through if it is enacted. Details and sources
Aircraft in British Columbia
Worked examples
| Purchase | Old year-one deduction | New year-one deduction | Tax reduction (small business) | Tax reduction (general rate) | NPV benefit (general) |
|---|---|---|---|---|---|
| $25,000 | $3,125 | $25,000 | $2,750 | $6,750 | $1,278 |
| $100,000 | $12,500 | $100,000 | $11,000 | $27,000 | $5,113 |
| $250,000 | $31,250 | $250,000 | $27,500 | $67,500 | $12,781 |
BC's PST generally applies to equipment purchases and is added to the capital cost you can write off. Personal use of a corporate aircraft creates a taxable benefit. Track business use carefully.
What sales tax does to your deductible cost in British Columbia
British Columbia charges GST 5% + PST 7%. The federal GST is recoverable through input tax credits and stays out of the capital cost, but the provincial tax generally is not. That non-recoverable tax becomes part of what the asset cost you, so it is deductible along with the asset.
| On a $100,000 purchase | Amount |
|---|---|
| Price before tax | $100,000 |
| Provincial tax at 7%, not recoverable | $7,000 |
| Capital cost you can deduct | $107,000 |
British Columbia PST is generally not recoverable, so it forms part of the capital cost and is deductible along with the asset. Manufacturers should check the production machinery and equipment exemption, which can remove PST from qualifying purchases entirely. Enter the tax-inclusive figure in the calculator to see the full deduction, not the sticker price.
See also: all assets in British Columbia · Aircraft in other provinces
Free: the Year-End Purchase Checklist (PDF)
One page. What qualifies, what does not, the 'available for use' trap, and the seven questions to ask your accountant before you buy. No spam, unsubscribe any time.
The Mega Deduction Year-End Playbook
Everything you need to walk into your accountant's office with a plan instead of a question. Built for owner-managed Canadian businesses that expect a profitable 2026.
- Excel purchase planner with every province's rates and every CCA class pre-loaded. Model up to 12 purchases, see the year-one deduction, tax reduction and 10-year comparison for each.
- The 46-page Playbook (PDF): eligibility by asset class, the exclusions, 'available for use' rules, financing vs. leasing, recapture risk, CCPC vs. sole proprietor, and worked examples for 12 industries.
- Accountant brief template (Word): a one-page memo you fill in and send so your accountant can confirm the plan in one email instead of a meeting.
- 30-day action plan for purchases that must be delivered and installed before your fiscal year-end.
$97$47 CAD one-time, instant download
Secure checkout by Stripe. Files delivered immediately after payment. Not tax advice; every plan should be confirmed by your accountant.