SB175 Summary

• Exempts sales of aircraft replacement parts, components, systems, and supplies used for conversion, reconfiguration, or general maintenance by certified or licensed air carriers from Alabama state sales and use tax from September 1, 2025, to August 31, 2030.

• Exempts sales 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 tax during the same period.

• Exempts leasing or rental of aircraft replacement parts and components used by certified or licensed air carriers from state lease or rental tax from September 1, 2025, to August 31, 2030.

• Adds new provisions to Section 40-12-222 establishing that commercial aircraft lease or rental tax is determined based on where the aircraft first enters revenue service.

• Allows municipalities and counties to adopt resolutions or ordinances exempting these aircraft purchases from local sales, use, and lease or rental taxes.