HI SB2399

Exempts from Hawaii's general excise tax the sale of materials, parts, and tools purchased by federally licensed aircraft carriers for aircraft service and maintenance or construction of maintenance facilities.

Addresses a Hawaii Intermediate Court of Appeals ruling that found existing exemption language did not cover parts sales, despite the complementary use tax already exempting such imports from out-of-state sellers.

Defines "licensed aircraft carrier" as an airline or aircraft operator with FAA and US Department of Transportation certification under 14 C.F.R. Parts 121 and 135.

Aligns Hawaii with 16 other states (including Arizona, California, Florida, Texas, and New York) that explicitly exempt aircraft parts from sales tax when sold to federally licensed carriers.

Takes effect July 1, 2050.