Nebraska lawmakers have reduced the tangible personal property tax burden on aircraft used for business—in essence, virtually any activity that produces income. Gov. Pete Rickets signed the new law on May 27, creating a $10,000 exemption on the assessed value of business aircraft subject to property taxation based on their net book value. Under state law, that tax assessment includes costs (such as sales tax) associated with putting the aircraft in service, less depreciation. Aircraft not used to generate income were already fully exempt.
Aircraft used for business now become fully exempt once depreciation equals or exceeds the net value; the new law will reduce the assessment on all other business aircraft by $10,000.
AOPA Central Southwest Regional Manager Yasmina Platt said the new law will provide welcome relief for flight schools and others who earn a living with their aircraft. (Agricultural aircraft were previously exempt from tangible personal property taxation under another state law.)
The legislation was introduced in January and approved by the Nebraska Unicameral Legislature on May 21.
