House Bill 1997 amends various sections of the Tennessee Code Annotated to broaden the exemption from sales and use tax for aircraft repair services and parts. The bill replaces the term "large aircraft" with "aircraft" in multiple instances, specifically in Sections 67-6-302 and 67-6-313, thereby expanding the scope of the exemption to include all types of aircraft. Additionally, it introduces new definitions for terms related to aircraft, such as "aircraft accessories," "aircraft engine equipment," and "authorized aircraft service facility," which clarify the types of services and components that qualify for the tax exemption.

The bill also revises the definition of "repair and refurbishment services" to encompass a wider range of activities related to aircraft maintenance, including testing, inspections, and modifications. By removing specific references to "transport category aircraft" and consolidating definitions, the legislation aims to simplify the regulatory framework surrounding aircraft repair services in Tennessee. The act is set to take effect on July 1, 2026, ensuring that the changes are implemented in a timely manner for stakeholders in the aviation industry.

Statutes affected:
Introduced: 67-6-302(c), 67-6-302, 67-6-302(c)(3), 67-6-313(h)(1)(D)(ii), 67-6-313, 67-6-313(k)