Des Moines, Iowa — Governor Kim Reynolds has approved a tax break for the aircraft industry.
State sales tax on parts for planes and on the labor to maintain and repair aircraft will no longer be charged after July 1st. During House debate in April, Representative Lee Hein of Monticello said none of the states that surround Iowa charge the sales tax on parts and labor for planes.
Bill backers said those job opportunities will spur enrollment at community colleges in Council Bluffs, Ottumwa and Waterloo that offer aircraft maintenance courses, so students can get FAA certification. Community colleges in Sioux City and Cedar Rapids plan to start aircraft maintenance programs. Representative Chris Hall of Sioux City says it will spur more activity at Iowa’s community airports.
One lawmaker who runs a global charity says he flew the non-profit’s plane out of state for maintenance to save money on taxes. According to the Iowa Public Airports Association, at least 34 states do not charge sales taxes on airplane parts and labor. The Legislative Services Agency estimates Iowans who own planes will save 10 million dollars a year from this tax break, which the governor signed into law yesterday on Tuesday.
