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AlabamaHB2532025 Regular SessionHouse

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

Sponsored By: William Brock Colvin (Republican)

Enacted

Taxation & Revenue

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Bill Overview

Analyzed Economic Effects

1 provisions identified: 1 benefits, 0 costs, 0 mixed.

Airlines get temporary aircraft tax breaks

From September 1, 2025, through August 31, 2030, Alabama exempts qualifying aircraft purchases and parts from certain state taxes. Aircraft delivered in Alabama for use by certified or licensed air carriers qualify for sales and use tax relief. They cannot be hubbed or permanently based in Alabama. Replacement parts, components, systems, supplies, and related items qualify for sales, use, and lease or rental tax relief. These items must attach to, be used on, or become part of aircraft temporarily in Alabama for conversion, reconfiguration, or maintenance. The aircraft must serve qualifying carriers and cannot be permanently based in Alabama, including during the parts lease. Qualifying out-of-state ties include a main hangar outside Alabama, or the buyer's out-of-state headquarters on the purchase date with a qualifying carrier operating the aircraft. County and city tax relief requires a local ordinance or resolution. Separately, beginning June 1, 2025, commercial aircraft lease taxes follow the aircraft's location when it first enters revenue service. That location governs both initial and later payments; the rule does not change the stated tax rate.

Sponsors & Cosponsors

Sponsor

  • William Brock Colvin

    Republican • House

Cosponsors

  • Adline Clarke

    Democratic • House

  • David Faulkner

    Republican • House

  • Joe Lovvorn

    Republican • House

  • Matt Woods

    Republican • Senate

  • Paul W. Lee

    Republican • House

  • Steve Clouse

    Republican • House

Roll Call Votes

All Roll Calls

Yes: 364 • No: 0

Senate vote • 4/24/2025

Third Reading in Second House

Yes: 30 • No: 0

Senate vote • 4/24/2025

Motion to Read a Third Time and Pass - Adopted Roll Call 833

Yes: 30 • No: 0

House vote • 3/18/2025

Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 436

Yes: 101 • No: 0 • Other: 1

House vote • 3/18/2025

Motion to Adopt - Adopted Roll Call 435

Yes: 101 • No: 0 • Other: 1

House vote • 3/18/2025

Third Reading in House of Origin

Yes: 102 • No: 0

Actions Timeline

  1. Enacted

    5/1/2025House

  2. Third Reading in Second House

    4/24/2025Senate

  3. Fiscal Responsibility and Economic Development 1st Amendment Offered

    4/24/2025Senate

  4. Kitchens motion to Table - Adopted Voice Vote

    4/24/2025Senate

  5. Motion to Read a Third Time and Pass - Adopted Roll Call 833

    4/24/2025Senate

  6. Ready to Enroll

    4/24/2025House

  7. Ready to Enroll

    4/24/2025House

  8. Enrolled

    4/24/2025House

  9. Signature Requested

    4/24/2025Senate

  10. Delivered to Governor

    4/24/2025House

  11. Fiscal Responsibility and Economic Development 1st Amendment

    4/9/2025Senate

  12. Reported Out of Committee Second House

    4/9/2025Senate

  13. Read for the Second Time and placed on the Calendar

    4/9/2025Senate

  14. Read for the first time and referred to the Senate Committee on Fiscal Responsibility and Economic Development

    4/8/2025Senate

  15. Pending Committee Action in Second House

    4/8/2025Senate

  16. Third Reading in House of Origin

    3/18/2025House

  17. Ways and Means Education Engrossed Substitute Offered

    3/18/2025House

  18. Motion to Adopt - Adopted Roll Call 435

    3/18/2025House

  19. Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 436

    3/18/2025House

  20. Engrossed

    3/18/2025House

  21. Ways and Means Education 1st Amendment

    3/5/2025House

  22. Reported Out of Committee House of Origin

    3/5/2025House

  23. Read for the Second Time and placed on the Calendar

    3/5/2025House

  24. Read for the first time and referred to the House Committee on Ways and Means Education

    2/11/2025House

  25. Pending Committee Action in House of Origin

    2/11/2025House

Bill Text

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