Aviation industry tax breaks bill sent to Sandoval

CARSON CITY — Tax breaks for the aviation industry won final legislative approval Friday from the Nevada Senate.

Assembly Bill 161, which received a unanimous vote of support, was sent to Gov. Brian Sandoval.

Securing tax breaks for the industry was a priority for the Governor’s Office of Economic Development and the Southern Nevada legislative caucus, who said the move would bring job growth and economic gain to the Silver State.

AB161, sponsored by Assemblywoman Irene Bustamante Adams, D-Las Vegas, mirrored a bill that was also introduced in the Senate.

It gives partial sales and personal property tax abatements to companies that own, operate, manufacture, service, test or assemble aircraft or aircraft components. Tax breaks do not apply toward the purchase of an aircraft.

Backers of the bill said Nevada will see almost immediate economic benefits because of an already present workforce, aviation companies and demand, especially in tourist-driven Las Vegas.

Witnesses during earlier hearings said Nevada is one of only five states in the contiguous United States and the only one in the West that does not offer aviation tax incentives.

Unlike surrounding states, Nevada charges full sales tax on aviation parts.

Steve Hill, executive director of the economic development office, said that means aircraft owners — from business travelers to helicopter tour operators — frequently fly their aircraft short distances to other states where they can buy parts and maintenance more cheaply.

Contact Sandra Chereb at schereb@reviewjournal.com or 775-687-3901. Find her on Twitter: @SandraChereb.