HB1997 • 2026

Taxes, Sales

AN ACT to amend Tennessee Code Annotated, Title 67, Chapter 6, Part 3, relative to exemption from sales and use tax on aircraft repair services and parts.

Taxes

Active

The official status still shows this bill as active or still awaiting another formal step.

Sponsor: Stevens, White
Last action: 2026-04-08
Official status: Placed on s/c cal Finance, Ways, and Means Subcommittee for 4/14/2026
Effective date: Not listed

Plain English Breakdown

The candidate explanation included claims about changing definitions that were already supported by official material.

Expanding Aircraft Repair Tax Exemptions

This bill changes Tennessee law to exempt all aircraft repair services and parts from sales tax, not just those for large aircraft.

What This Bill Does

Expands existing tax exemptions on repairs and parts used by authorized aircraft service facilities to cover all types of aircraft, not just large ones.
Clarifies that 'aircraft' includes both airplanes and helicopters, regardless of weight or size.

Who It Names or Affects

Authorized aircraft service facilities in Tennessee
Companies affiliated with these facilities

Terms To Know

Aircraft: Both airplanes and helicopters, regardless of weight or size.
Authorized Aircraft Service Facility: A repair station in Tennessee that is certified by the Federal Aviation Administration to perform aircraft repairs.

Limits and Unknowns

The bill does not specify how much money will be lost from tax revenue.
It's unclear if this change will attract more businesses to Tennessee or create new jobs.
The exact impact on local and state government revenues is uncertain.

Bill History

2026-04-08 Tennessee General Assembly
Placed on s/c cal Finance, Ways, and Means Subcommittee for 4/14/2026
2026-03-18 Tennessee General Assembly
Placed behind the budget
2026-03-11 Tennessee General Assembly
Placed on s/c cal Finance, Ways, and Means Subcommittee for 3/18/2026
2026-02-24 Tennessee General Assembly
Refer to Senate Finance, Ways & Means Committee w/ negative recommendation
2026-02-17 Tennessee General Assembly
Placed on Senate FW&M Revenue Subcommittee calendar for 2/24/2026
2026-02-10 Tennessee General Assembly
Refer to Senate FW&M Revenue Subcommittee
2026-02-05 Tennessee General Assembly
Passed on Second Consideration, refer to Senate Finance, Ways, and Means Committee
2026-02-04 Tennessee General Assembly
Assigned to s/c Finance, Ways, and Means Subcommittee
2026-02-04 Tennessee General Assembly
P2C, ref. to Finance, Ways, and Means Committee
2026-02-02 Tennessee General Assembly
Intro., P1C.
2026-02-02 Tennessee General Assembly
Introduced, Passed on First Consideration
2026-01-23 Tennessee General Assembly
Filed for introduction
2026-01-22 Tennessee General Assembly
Filed for introduction

Official Summary Text

Present law exempts both of the following from sales or use tax for large aircraft, which is any aircraft that has a certified maximum take-off weight of 12,500 pounds or greater:



The sale, use, storage, or consumption of parts, components, software, systems, accessories, materials, equipment, and supplies that are sold to or sold by an authorized large aircraft service facility in this state or affiliate.



All repair and refurbishment service labor performed with respect to large aircraft mainframes, large aircraft engine equipment, and large aircraft accessories, when the repair and refurbishment services on the mainframes, equipment, and accessories are initiated, contracted, performed, or completed in or by an authorized large aircraft service facility, including, but not limited to, repair and refurbishment service labor performed by an authorized large aircraft service facility pursuant to the terms of guaranty, warranty, or service contracts.

This bill expands the exemptions described above beyond just large aircraft and applies the exemptions to any authorized aircraft service facilities or affiliates of such facilities. This bill clarifies that "aircraft
" includes
both airplanes and helicopters, regardless of weight.

Current Bill Text

Read the full stored bill text

SENATE BILL 2143
By White

HOUSE BILL 1997
By Stevens
HB1997
010925
- 1 -

AN ACT to amend Tennessee Code Annotated, Title 67,
Chapter 6, Part 3, relative to exemption from sales
and use tax on aircraft repair services and parts.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 67-6-302(c), is amended by deleting
"large aircraft" wherever it appears in subdivision (c)(1) and substituting instead "aircraft".
SECTION 2. Tennessee Code Annotated, Section 67-6-302(c)(3), is amended by
deleting the subdivision and substituting instead:
(3) As used in this subsection (c):
(A) "Affiliate" means a company owned and controlled by or under the
common ownership and control of, and conducting business at, an authorized
aircraft service facility;
(B) "Aircraft" means a helicopter as defined in § 67-6-313(h)(2) or an
airplane;
(C) "Aircraft accessories" means any accessories, appurtenances,
equipment, software, systems, or components for installation or use in
connection with any aircraft mainframes or aircraft engines;
(D) "Aircraft engine equipment" means any aircraft engine, including all
associated parts, appurtenances, and accessories, for the propulsion of an
aircraft mainframe;
(E) "Aircraft mainframes" means any aircraft body, wing, rotor system, tail
assembly, aileron, rudder, landing gear, engine housing, and any other assembly
or component integral to the aerodynamic structure of an aircraft;

- 2 - 010925

(F) "Authorized aircraft service facility" means a repair station located
within this state that is engaged in repair and refurbishment services of aircraft
mainframes, aircraft engine equipment, and aircraft accessories under a valid air
agency certificate issued by the federal aviation administration in accordance
with 14 CFR Part 145 of the federal aviation regulations, with an organization
designation authority, or other similar or successor certificate and authority as the
federal aviation administration may provide for from time to time; and
(G) "Repair and refurbishment services" includes, but is not limited to,
testing, inspections, interior completions, refurbishments, installations, painting,
modifications, repairs, maintenance, or overhaul of aircraft mainframes, aircraft
engine equipment, and aircraft accessories.
SECTION 3. Tennessee Code Annotated, Section 67-6-313(h)(1)(D)(ii), is amended by
deleting "with respect to aircraft qualifying as 'transport category aircraft' under 14 CFR, parts
25, 29, 91 and 121".
SECTION 4. Tennessee Code Annotated, Section 67-6-313(k), is amended by deleting
"large aircraft" wherever it appears in subdivisions (1) and (2) and substituting instead "aircraft".
SECTION 5. Tennessee Code Annotated, Section 67-6-313(k), is amended by deleting
subdivisions (3)(A) and (3)(B) and substituting instead:
(A) "Aircraft and related equipment" means any aircraft consisting of an aircraft
mainframe and aircraft engine equipment, including any aircraft accessories associated
with the aircraft or aircraft engine, whether installed or uninstalled;
(B) "Aircraft", "aircraft accessories", "aircraft engine equipment", "aircraft
mainframes", "authorized aircraft service facility", and "repair and refurbishment
services" have the same meanings as defined in § 67-6-302; and
SECTION 6. This act takes effect July 1, 2026, the public welfare requiring it.