HB3902

  • Sen. Dave KoehlerSPRINGFIELD – Yesterday, Gov. JB Pritzker vetoed House Bill 3902, which would reinstate Illinois’ sales tax exemption for aircraft materials, prioritizing jobs in the aviation-repair industry and allowing business to compete with 35 other states.

    State Senator Dave Koehler (D-Peoria) issued the following statement:

    “The reality of the situation is that this exemption helps our state remain competitive in the aviation industry, and it needs to be reinstated. Without it, aviation companies will outsource these good-paying jobs to other states. We should prioritize the nearly 3,400 jobs across the state that are being threatened due to the governor’s decision.”

    Peoria is home to Byerly Aviation, a state of the art facility offering maintenance, charters, and aircraft sales.

  • airplane mech 111419SPRINGFIELD – Legislation co-sponsored by State Senator Dave Koehler (D-Peoria) that would ensure the preservation of manufacturing jobs in the Peoria area passed the Senate with bipartisan support yesterday.

    “The point of this legislation is simple: to keep good-paying jobs in our area,” Koehler said. “Without this tax exemption there is no question that aviation companies would have to take a long look at doing business elsewhere.”

    Peoria is home to Byerly Aviation, a company that offers maintenance, charters and aircraft sales.

    This legislation would reinstate the Illinois state sales tax exemption for materials used in aircraft manufacturing, which expired Dec. 31, 2014.

    Since its expiration, the Illinois Department of Revenue audited several privately owned aviation repair companies and never required them to collect sales tax. The Illinois Aviation Trades Association believes the outstanding tax bill is roughly $50 million.

    “Since the expiration of this sales tax, Illinois has become an outlier,” Koehler said. “In order to remain competitive with several other states who currently offer this exemption, we had to reinstate it.”

    This legislation now awaits the governor’s signature.

  • airplane mech 111419SPRINGFIELD – State Senator Steve Stadelman (D-Rockford) joined fellow lawmakers to pass a measure that would prevent the loss of hundreds of good-paying jobs across the state, including dozens in the Rockford area

    The legislation would reinstate a sales tax exemption for aircraft maintenance materials. Most other states offer this exemption, so Illinois needs it to remain competitive. Illinois neighbors Wisconsin, Missouri and Indiana all offer similar exemptions, as do major competitors like California and New York.

    “Companies like Emery Air provide good-paying jobs in the Rockford area,” Stadelman said. “We need to keep Illinois open for business and support these aviation jobs.”

    Over the last four years since the exemption expired, aviation repair companies didn’t charge any sales taxes along with their services. The Department of Revenue failed to identify or collect missing tax revenue. The legislation forgives the companies for unintentionally not collecting taxes.

    “These companies shouldn’t be penalized for not collecting the tax when they didn’t know the tax credit had expired,” Stadelman said. “I’m urging the governor to reconsider signing this crucial legislation. Hundreds of Illinoisans’ jobs depend on it.”

    House Bill 3902 passed the Senate 48-1-2, and it will now be sent to the governor, who has already pledged to veto the measure.

  • crowe jet 111419SPRINGFIELD – Legislation showing vast support to the aviation repair industry in Illinois is one step closer to becoming law under the firm leadership of State Senator Rachelle Crowe (D-Glen Carbon).

    “I am delighted the majority of the Senate agreed this exemption is necessary in support of the economic contributions jet repair companies provide to the entire state of Illinois,” Crowe said. “But this fight is not over.”

    The measure reinstates Illinois’ sales tax exemption for aircraft materials, which expired Dec. 31, 2014.