HB185 • 2026

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

Taxes

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Colvin
Last action: 2026-01-14
Official status: Pending Committee Action in House of Origin
Effective date: Not listed

Plain English Breakdown

Although official metadata states the bill passed both chambers, it also notes it was re-referred to committee on January 14, 2026. The final status is unclear based solely on this text.

Tax Exemption for General Aviation Aircraft in Alabama

This bill removes property taxes starting October 1, 2026, for certain non-commercial airplanes and their equipment if they are owned or leased by companies based in Alabama.

What This Bill Does

Exempts general aviation aircraft from ad valorem tax beginning on October 1, 2026.
Removes the same tax requirement for machinery or equipment installed on these specific aircraft.
Requires the Department of Revenue to create rules for how this law will work.
Sets a definition for what counts as a general aviation aircraft under this act.

Who It Names or Affects

Companies whose main place of business is in Alabama that own or lease qualifying aircraft.
The Department of Revenue, which must write rules to manage the tax exemption.
Owners of civil aviation planes that are not commercial flights, military jets, or drones.

Terms To Know

Ad valorem tax: A property tax based on the value of an item like a plane or machine.
General aviation aircraft: Civilian planes that are not used for commercial flights, military missions, or as drones.

Limits and Unknowns

The bill does not say how much money the state will lose in tax revenue.
Specific rules about applying for this exemption have not been written yet by the Department of Revenue.
The text does not explain what happens if a company moves its main business out of Alabama after getting the exemption.

Bill History

2026-01-14 House
Re-referred to Committee in House of Origin
2026-01-13 House
Pending Committee Action in House of Origin
2026-01-13 House
Read for the first time and referred to the House Committee on Ways and Means Education

Official Summary Text

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

Current Bill Text

Read the full stored 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
Page 2
(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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