Tax Exemption on Aircraft Repair Parts and Labor Lands on Governor Reynolds’ Desk

April 7, 2022

After years in a holding pattern, the legislature has acted on SF 2370, which is a bill that would lift the taxes currently collected on repair parts and labor for general aviation airplanes. For years, there has been no such tax on commercial aircraft. This has put Iowa at a disadvantage when compared to neighboring states because they have no such tax. As a result, Iowa-based aircraft have been seeking repairs in other jurisdictions. Furthermore, several of Iowa’s community colleges that offer training in aircraft repair have reported that many of their graduates are recruited away to no-tax states for employment. The hope is this legislation will reverse both of these trends. ABI was pleased to support this legislation and thanks ABI member Elliott Aviation for leading the charge. The bill awaits Gov. Reynolds’ signature and the change in taxation will occur July 1st.

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