May 03--The Alabama Legislature has passed a bill that creates a tax break for aircraft maintenance and repair companies such as Dothan's Commercial Jet, Inc.
House Bill 216 sailed through the House earlier in the week and passed the Senate easily on Thursday. Gov. Robert Bentley is expected to sign the bill into law.
The bill actually clarifies the language of a bill passed by the Legislature and enacted into law in 2012. The 2012 bill offered a sales tax exemption for materials and equipment used in the refurbishment of commercial and rotary wing aircraft. It was meant to include a use tax exemption as well. However, the language of the bill did not provide for a use tax exemption.
"This is a major deal right in our own backyard," said Lee, who sponsored the bill in the House along with local Reps. Donnie Chesteen (Geneva), Barry Moore (Enterprise) and Steve Clouse (Ozark). Sens. Harri Anne Smith (Slocomb) and Jimmy Holley (Elba) sponsored the bill in the Senate.
The aircraft maintenance and repair bill languished in the Legislature for several years. It was originally introduced in the hope that it would entice Pemco World Air Services to remain in Dothan. However, Pemco filed for bankruptcy before the bill could pass in 2012. It was then used as a recruitment tool by local officials.
"This ended up being one of the reasons Commercial Jet chose to come to Dothan," Lee said.
Copyright 2013 - Dothan Eagle, Ala.
