Illinois Provides Tax Exemption for Aircraft Parts

On June 7, 2023, Governor J.B Pritzker signed S.B. 1963, which amended Article 5 of the Use Tax Code to provide exemptions for aircraft parts. The original expiration date of December 31, 2024, was extended to December 31, 2029, on most components needed for airplanes including both cosmetic and repair/replacement parts. Beginning January 1, 2024, the exemption is also extended to supplies used in engines and power plants, whether installed on aircraft or not. To claim this exemption, the purchaser must be someone who works on aircraft, holds an Air Agency Certificate, and is empowered to operate a Federal Aviation Agency repair station with a Class IV rating and under Part 145 of FAA Regulations, or a person who works on aircraft engines or power plants even without the other certifications.

For taxpayers in Illinois who are in the business of aircraft repair or those who work on airplane engines or power plants, this exemption is certainly worth claiming. Those who may qualify should ensure they have the correct certifications to qualify as tax-exempt and that their records are in order so they can claim the exemption. (Illinois State Bill 1963, passed June 7, 2023)

Posted on September 28, 2023