MI HB4168

Exempts sales of aircraft weighing at least 6,000 pounds maximum certificated takeoff weight to domestic air carriers when used solely for transporting air cargo, passengers, or both from Michigan sales tax.

Exempts sales of parts and materials (excluding shop equipment and fuel) affixed to qualifying aircraft from sales tax, removing previous conditions requiring the aircraft to leave the state within 15 days and residency restrictions.

Exempts sales of aircraft temporarily in Michigan for prepurchase evaluation, customization, improvement, maintenance, or repair from sales tax if the aircraft leaves within 15 days of completion and meets residency conditions.

Exempts sales of aircraft to persons for subsequent lease to domestic air carriers operating under Federal Aviation Administration Part 121 certificate for regularly scheduled passenger transport from sales tax.

Defines key terms including "aircraft," "based in this state," "domestic air carrier," "customization," "prepurchase evaluation," and "registered in this state" for purposes of the exemptions.