North Carolina extends sales tax exemption to include US Airways and HondaJet


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Nov 28, 2001
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The North Carolina Senate voted at the end of its session to expand the sales tax exemption to flight simulators, aircraft lubricants, aircraft repair parts, and aircraft accessories. The Senate ratified the bill just before its summer recess with a 42-1 vote intended to favor Charlotte hub operator US Airways and Greensboro based Honda Aircraft, manufacturer of the soon to be in service HondaJet.

One of the newer entries into the Very Light Jet (VLJ) catagory is slated to enter service in late 2011. The aircraft features unique over the wing engine pods that Honda believes will increase cabin room and achieve greater aerodynamic efficiency in aircraft wing design.

The Senate bill 1057 must still pass in the N.C. House of Representatives to become law. The House will adjourn on Tuesday ending its session for the summer. Based on the equipment involved, the estimate is the tax break to be valued at $2M for the companies involved.