B&O credit for property/leasehold taxes paid on aerospace business facilities
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.
- Certified FAR repair stations.
- Aerospace tooling manufacturers.
Qualifying activity:
For manufacturers and processors for hire:
- Payment of property/leasehold taxes on new buildings, land, and the increased value of renovated buildings used exclusively in manufacturing commercial airplanes or components of such airplanes; or in manufacturing tooling specifically designed for use in manufacturing commercial airplanes or components of such airplanes.
- Payment of property taxes on equipment eligible for the machinery and equipment (M&E) exemption multiplied by a fraction for qualifying use.
For certified FAR repair stations and aerospace non-manufacturers:
- Payment of property/leasehold taxes on new buildings, land, and the increased value of renovated buildings used exclusively in aerospace product development or in providing aerospace services.
- Payment of property taxes on qualifying computer equipment and peripherals used primarily in aerospace product development or in providing aerospace services.
Reporting/documentation:
- No application required.
- Annual Tax Performance Report filed by May 31 of the following year.
- Electronic filing required.
Expires July 1, 2040.
For questions about the credit, call Taxpayer Account Administration at 360-705-6216.