HB253 Summary

• Exempts gross receipts from the sale of aircraft replacement parts, components, and supplies used for conversion, reconfiguration, or general maintenance of aircraft brought into Alabama by certified or licensed air carriers from state sales and use taxes from September 1, 2025, to August 31, 2030.

• Exempts gross receipts from the sale of aircraft delivered in Alabama and used by certified or licensed air carriers (so long as the aircraft will not be hubbed in Alabama) from state sales and use taxes during the same period.

• Amends Section 40-12-222 to establish that for commercial aircraft used by certificated or licensed air carriers, the lease or rental tax is determined based on where the aircraft is first entered into revenue service, rather than at the lessor's location.

• Amends Section 40-12-223 to exempt gross receipts from leasing or rental of aircraft replacement parts, components, systems, and supplies used for aircraft undergoing conversion, reconfiguration, or general maintenance while temporarily in the state from September 1, 2025, to August 31, 2030.

• All exemptions do not apply to county or municipal sales, use, lease, or rental taxes unless approved by local resolution or ordinance; bill becomes effective June 1, 2025.