HB 4169 Summary

• Exempts aircraft parts and materials (excluding shop equipment or fuel) affixed to aircraft from use tax when the aircraft has a maximum certificated takeoff weight of at least 6,000 pounds and is used solely for transporting air cargo, passengers, or a combination thereof by a domestic air carrier.

• Removes the requirement that aircraft must meet specific conditions (leaving the state within 15 days, not being based or registered in Michigan before and after parts are affixed) to qualify for the parts and materials exemption.

• Eliminates conditions for the sale of temporarily located aircraft exemption, simplifying the provision to apply to aircraft temporarily in Michigan for sales, evaluations, customization, improvement, maintenance, or repair if the aircraft leaves within 15 days and meets basing/registration requirements.

• Adds definitions for "aircraft" (excluding unmanned aerial vehicles), "domestic air carrier," and clarifies related terms including "based in this state," "customization," "prepurchase evaluation," and "registered in this state."

• Takes effect 90 days after enactment into law.