Bill > HB1688

This bill, effective July 1, 3000, 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 is intended to address a recent court decision that interpreted existing law to not exempt the sale of these parts from the general excise tax, despite a complementary use tax exemption for out-of-state purchases, and aims to make Hawaii more competitive with other states in attracting and retaining aircraft maintenance jobs and facilities. The general excise tax is a tax on the gross income of businesses in Hawaii, and this bill specifically exempts certain transactions related to the aviation industry from this tax.

Budget and Finance, Transportation and Infrastructure

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=1688&year=2026