Oct. 4, 2024
After almost seven years of promoting maintenance activities conducted in Virginia, an important sales-and-use tax exemption is set to expire in 2025.
NBAA and industry partners, including the Greater Washington Business Aviation Association (GWBAA), Aircraft Owners and Pilots Association and the Virginia Aviation Business Association are seeking data to measure the impact of the tax policy to advocate for an extension to this economic driver for the state.
A 2018 survey indicated most NBAA member companies based in Virginia traveled outside the commonwealth for major maintenance work, spending $50,000-$100,000 per event. The sales-and-use tax exemption on aircraft parts and maintenance, passed in 2017 and in effect on July 1, 2018, incentivized operators to remain in Virginia for major maintenance events and even led to the expansion of some maintenance repair and overhaul (MRO) facilities.
“Virginia has seen aircraft maintenance, and in particular aircraft avionics maintenance/repair facilities, open and expand in the state to support the growing industry. These facilities not only support aviation activities but also bring well-paying jobs to all parts of Virginia, said Caleb Stitely, GWBAA president. “With the neighboring state of North Carolina already having this exemption, and Maryland recently extending their tax exemptions through 2030, we support and encourage the commonwealth of Virginia to follow suit.”
NBAA and its partner associations are conducting a new survey of Virginia-based aircraft owners and operators to help measure the impact of the sales and use tax exemption. The survey requests revenue, income or savings based on the aviation parts sales-and-use tax exemption. All data will remain confidential and will only be accessible to the firm conducting the survey and compiling the final report.
“We know from data produced by other states with similar sales-and-use tax exemptions on aircraft parts and maintenance that the exemptions attract aircraft owners and operators for major maintenance activities and even bring in new or expanded MRO facilities,” said Greg Voos, NBAA’s regional director for the Southeast region. “NBAA strongly encourages the Virginia legislature to extend and eventually make permanent this important economic driver to the state’s aviation industry.”
Stitely added, “Extending this exemption through 2030 will incentivize aircraft operators and owners to keep maintenance activities in Virginia, rather than moving the aircraft to have the same scope of maintenance completed elsewhere at a lower cost.”
Any Virginia NBAA member who has not yet been contacted about the survey may reach out to Voos at gvoos@nbaa.org.
International Business Aviation Council Ltd.