HB468 Alabama 2010 Session

Summary

Primary Sponsor

Terry Spicer

Democrat

Session

Regular Session 2010

Title

Commercial passenger aircraft with 25 seats or more, parts, components, systems, supplies, and ancillary items used in conversion or refurbishing of, sales and use and property tax exempt, Secs. 40-9-1, 40-23-4, 40-23-62 am'd.

Summary

HB468 would create sales/use and property tax exemptions for parts and supplies used in converting or refurbishing large commercial aircraft (25 seats or more) in Alabama, and would extend tax relief to aircraft undergoing such work and related equipment during maintenance.

What This Bill Does

Provides sales, use, and property tax exemptions for parts, components, systems, supplies, and ancillary items used in the conversion or refurbishment of commercial passenger aircraft with a seating capacity of 25 seats or more. Exempts from tax the sale of commercial aircraft in Alabama during the period they are undergoing a conversion, reconfiguration, refurbishment, or repair if the aircraft originally had 25+ seats or if it has space to install 25+ seats. Allows exemptions for ground support equipment and sundry items used by certificated or licensed air carriers with hub operations in Alabama, subject to definitions of hub operations. Sets eligibility criteria for hub operations (flight departures and destinations, and regular passenger/property exchanges) that influence whether certain fuel and supplies used to support those operations are exempt.

Who It Affects

• Owners, operators, and lessors of commercial passenger aircraft with 25 or more seats in Alabama, who would benefit from reduced costs on parts and supplies used during conversions or refurbishments and potentially during aircraft sales tied to conversion work.
• Aircraft maintenance, repair, and overhaul providers and suppliers in Alabama that perform or supply items for aircraft undergoing conversion or refurbishment, who would face reduced tax costs on qualifying parts, systems, and related equipment.

Key Provisions

• Exemption from sales, use, and ad valorem taxes for parts, components, systems, supplies, and ancillary items used in converting or refurbishing 25+ seat commercial aircraft.
• Exemption from taxes on the sale of commercial aircraft in Alabama during the time period they are undergoing conversion/refurbishment, for aircraft originally configured with 25+ seats or that have space to install 25+ seats, and located in a facility designed for heavy maintenance.
• Exemption for ground support equipment and related components used in the conversion/refurbishment of such aircraft, when these items become part of the aircraft undergoing conversion.
• Inclusion of exemptions for hub-operations-related fuel, supplies, and equipment used to transport people or property by air, with eligibility tied to defined hub operation criteria (minimum departures, destinations, and regular exchanges).
• Authority and scope clarified across multiple Code sections (40-9-1, 40-23-4, and 40-23-62), with severability and immediate effectiveness upon enactment.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Taxation