HB339 Alabama 2025 Session

Summary

Primary Sponsor

Prince ChestnutRepresentative

Democrat

Session

2025 Regular Session

Title

Taxation; certain aircraft and aircraft parts are exempt from sales, use, lease and ad valorem taxes

Summary

HB339 would exempt certain large general aviation aircraft and the equipment installed on them from sales, use, lease/rental, and ad valorem taxes in Alabama.

What This Bill Does

It defines a 'general aviation aircraft' as an aircraft over 12,500 pounds used in civil aviation, not a commercial, military, or unmanned aircraft, owned or leased by an Alabama-based company, and it exempts the sale of such aircraft and any installed equipment from state, county, and municipal sales and use taxes. Beginning October 1, 2024, these aircraft and installed equipment are exempt from ad valorem taxes, and beginning October 1, 2025, they are exempt from lease and rental taxes as well. The Alabama Department of Revenue may adopt rules to implement the act.

Who It Affects

• Owners or lessors of eligible general aviation aircraft (aircraft meeting the defined criteria and owned or leased by an Alabama-based company) who would benefit from sales/use tax exemptions and, later, lease/rental and ad valorem tax exemptions.
• State and local tax authorities (e.g., Alabama Department of Revenue and county/municipal governments) who would administer and enforce the exemptions and may adopt rules to implement the act.

Key Provisions

• Definition of 'general aviation aircraft': weighs over 12,500 pounds, used in civil aviation, not commercial, military, or unmanned, and owned or leased by a company whose principal place of business is in Alabama.
• Exemption from state, county, and municipal sales and use taxes on the sale of general aviation aircraft and any machinery or equipment installed on the aircraft.
• Exemption from state, county, and municipal lease and rental taxes for the lease of general aviation aircraft and installed equipment beginning October 1, 2025.
• Exemption from ad valorem taxes on general aviation aircraft and installed equipment beginning October 1, 2024.
• Department of Revenue may adopt rules to implement and administer the act.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Taxation & Revenue