Aircraft Repair, Maintenance, and Replacement Items Exempt in Illinois

Illinois has amended its laws to include an exemption for aircraft repair, maintenance, and replacement items. Specifically, materials, parts, equipment, components, and furnishings incorporated into or upon an aircraft as part of the modification, refurbishment, completion, replacement, repair, or maintenance of the aircraft are exempt from Illinois retailers’ occupation tax, service occupation tax, use tax, and service use tax, beginning January 1, 2010. Consumable supplies, such as adhesive, tape, sandpaper, general purpose lubricants, cleaning solution, latex gloves, and protective films are also eligible for the exemption. Items used in modifying, replacing, repairing, and maintaining aircraft engines or power plants, however, are not eligible.

The exemption applies only to those organizations that (1) hold an Air Agency Certificate and are empowered to operate an approved repair station by the Federal Aviation Administration, (2) have a Class IV Rating, and (3) conduct operations in accordance with Part 145 of the Federal Aviation Regulations. Aircraft operated by a commercial air carrier providing scheduled passenger air service pursuant to authority issued under Part 121 or Part 129 of the Federal Aviation Regulations are not eligible for the exemption (P.A. 96-759 {S.B. 450}, Laws 2009, effective as noted)

Posted on September 28, 2009