Phillip Cowger had faced a misdemeanor count of unauthorized use of a vehicle.
But the prosecutor says all sides involved in the crash have come to terms.
Cowger reportedly took the keys to the plane and flew it to another town to give a student pilot a lesson.
He told investigators that the owner had told him he could use the plane "anytime."
A Federal Aviation Administration report says Cowger told investigators the student used up too much runway and lifted off the ground without enough power.
The landing gear clipped some power lines, sending it into a nearby field and destroying it.
Both Cowger and the student pilot escaped with only minor injuries.