Taxation and revenue; to exempt certain aircraft, machinery, and equipment from ad valorem taxation

Plain English Breakdown

The official source material does not provide specific details about the types of equipment eligible under the exemption or the potential loss of tax revenue.

Tax Breaks for Some Aircraft and Equipment

This bill removes ad valorem taxes for certain general aviation aircraft and related equipment owned or leased by Alabama companies starting October 1, 2026.

What This Bill Does

• Exempts specific types of aircraft from ad valorem taxes starting October 1, 2026.
• Includes machinery and equipment installed on these exempted general aviation aircraft.
• Defines 'general aviation aircraft' as those used in civil aviation but not for commercial or military purposes or drones.
• Requires the Department of Revenue to create rules for implementing this tax exemption.

Who It Names or Affects

• Alabama companies that own or lease general aviation aircraft and related equipment.

Terms To Know

ad valorem taxes

Taxes based on the value of property, like aircraft.

general aviation aircraft

Aircraft used for non-commercial and non-military purposes.

Limits and Unknowns

• The bill does not specify how much tax revenue will be lost due to these exemptions.
• It is unclear what types of equipment are eligible under the exemption.

Official Summary Text

Taxation and revenue; to exempt certain aircraft, machinery, and equipment from ad valorem taxation

Current Bill Text

HB185 INTRODUCED
Page 0
HB185
5V1VL36-1
By Representative Colvin
RFD: Ways and Means Education
First Read: 13-Jan-26
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5V1VL36-1 12/10/2025 MR (F)MR 2025-3637
Page 1
First Read: 13-Jan-26
SYNOPSIS:
This bill would exempt certain aircraft and
equipment from ad valorem taxes.
A BILL
TO BE ENTITLED
AN ACT
Relating to taxation; to exempt certain general
aviation aircraft and any machinery or equipment installed on
these aircraft from ad valorem taxes.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. (a) Beginning on October 1, 2026, any
general aviation aircraft and any machinery or equipment to be
installed on these aircraft are exempt from ad valorem tax.
(b) For the purposes of this act, the term "general
aviation aircraft" means an aircraft that meets all of the
following:
(1) Is used in civil aviation.
(2) Is not a commercial aircraft, military aircraft, or
unmanned aerial vehicle or drone.
(3) Is owned or leased by a company whose principle
place of business is in the State of Alabama.
(c) The Department of Revenue shall adopt rules for the
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HB185 INTRODUCED
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(c) The Department of Revenue shall adopt rules for the
implementation and administration of this act.
Section 2. This act shall become effective on October
1, 2026.
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