HB20 Summary

• Extends the sales tax exemption for parts, components, and systems that become part of fixed or rotary wing military aircraft from May 30, 2022 to May 30, 2027 for new contracts or projects.

• Exemption applies to aircraft undergoing conversion, reconfiguration, or general maintenance as long as the aircraft's FAA registration address is not in Alabama.

• Exemption for contracts or projects entered into on or before May 30, 2027 remains available through May 30, 2030, regardless of future legislative action.

• Eliminates previous language allowing extension of the tax credit by joint resolution; future extensions require full legislative enactment.

• Prohibits joint resolutions from extending, expanding, or modifying any existing sales tax exemptions, with violations declared null and void.