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Area Development - Site Selection, Facility Planning and Workforce Development

Alabama Passes Sales Tax Break To Attract Aircraft Maintenance Business

04/10/2012
Both houses of the Alabama Legislature unanimously approved legislation designed to attract aircraft maintenance businesses to the state by exempting some of the parts they use from the state sales tax.

Gov. Robert Bentley is expected to sign the legislation into law.

Starting in October, the legislation waives the 4 percent state sales tax on a variety of parts that aircraft maintenance firms use on helicopters, as well as commercial and military planes that are brought to Alabama for maintenance or renovation over the next decade.

Republican Sen. Ben Brooks of Mobile said the incentive will make Alabama competitive with other Southern states that offer similar tax breaks. Fiscal experts estimate it will reduce states tax collections by $2.4 million to $3.5 million annually.

In a report the Aeronautical Repair Station Association noted "aviation maintenance is an important part of the economy in Alabama" employing an estimated 5,836 to 6,000 workers, and having a $657 million impact on the state's economy.

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