Bill > SB2399

This bill, effective January 1, 2027, amends Hawaii's general excise tax law to provide an exemption for the sale of materials, parts, or tools used for aircraft service and maintenance, or for the construction of an aircraft service and maintenance facility. This exemption specifically applies to sales made to a "licensed aircraft carrier," which is defined as an airline or aircraft operator holding an air carrier certificate from the Federal Aviation Administration and the U.S. Department of Transportation for transporting passengers or cargo. The bill aims to correct an imbalance where existing law exempted aircraft servicing and maintenance but not the sale of parts for these activities, and to make Hawaii more competitive with other states that offer similar tax breaks to attract and retain aircraft maintenance jobs and facilities.

Budget and Finance, Transportation and Infrastructure

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=2399&year=2026