Des Moines, Iowa — The Iowa legislature has approved a tax break for the aircraft industry.
The bill creates a sales tax exemption for aircraft parts and labor to repair planes. Representative Lee Hein of Monticello says many states, including all those that surround Iowa, do not assess a sales tax on airplane parts and labor.
Representative Charlie McConkey is a pilot from Council Bluffs.
Community colleges in Council Bluffs, Ottumwa, and Waterloo offer programs for students seeking FAA-approved certification as an aircraft maintenance mechanic. Representative Chris Hall of Sioux City says Western Iowa Tech in Sioux City hopes to start one soon, as a way to boost use of the Sioux City airport.
Senator Liz Mathis of Hiawatha says Kirkwood Community College plans to launch a similar program in the fall of 2023.
Senator Dan Dawson of Council Bluffs says the state spends a lot of money supporting community colleges — and airplane maintenance training — and it makes no sense for Iowa to have a tax environment that ultimately sends graduates out of state. The bill passed with the support of 140 of the legislature’s 150 members and is headed to the governor for her signature. According to an estimate from the Legislative Services Agency, the owners of the 33-hundred aircraft registered in Iowa may save up to 10 million dollars from this sales tax exemption. Some Iowans fly their planes to other states for maintenance to avoid the Iowa sales tax on parts and labor.
