Illinois tax incentive good for out-of-state aircraft owners

Illinois tax incentive good for out-of-state aircraft owners

AOPA is supporting an Illinois bill that would give out-of-state aircraft owners an incentive to do business in the state. Senate Bill 455 would provide a tax exemption on aircraft that are bought in the state but will be based and registered in another state. The aircraft must leave the state within 15 days of the final billing for purchase, and the owner must provide the state department of transportation's division of aeronautics with a signed and dated certificate that verifies the aircraft is not based in Illinois. It also would provide an exemption for aircraft temporarily located in the state for a prepurchase evaluation or post-sale customization. "By its nature, aviation does not recognize state lines," wrote Greg Pecoraro, AOPA vice president of regional affairs, in a letter to the state Senate Revenue Committee. "Aircraft owners living close to border states with more favorable tax environments will choose to purchase their aircraft in those states." AOPA pointed out that the bill would create more aircraft sales in the state, which would in turn produce more jobs and boost the state's economy.

May 25, 2007