In 2013, Minnesota State Law was changed to provide a tax exemption for the sale or purchase and associated installation charges of equipment and parts necessary for repair and maintenance of aircraft.
This includes equipment and parts to upgrade and improve aircraft (under FAA Regulations, Parts 91 and 135). The purpose of this change is to encourage the growth of the aviation services industry in the state. In 2016, MnDOT Aeronautics will report to the Legislature on the impact of these tax exemptions on aircraft repairs, maintenance, and improvements.
Your input will help provide a more complete assessment of the tax exemption impacts on private businesses and aviation in Minnesota.