Aerospace Incentives

Incentives are available to manufacturers and processors for hire of commercial airplanes or component parts of commercial airplanes, non-manufacturers engaged in the business of aerospace product development, FAR repair stations making retail sales, and aerospace tooling manufacturers.

• A 40% reduction in the State Business Occupation tax (taxing rate decreases from a rate of $4,840 per $1 million to $2,904 per $1 million).

• An exemption of the 7.9% sales and use tax when purchasing computer hardware.

• A State Business and Occupation tax credit equal to the property tax paid on new buildings, the land upon which buildings are located, and the increased value of renovated buildings.

• A State Business Occupation tax credit equal to 1.5% of qualified pre-production development expenditures used in manufacturing commercial airplanes or component parts of commercial airplanes.