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.