Pro-Growth Policy for Aerospace Jobs

Texas’ aircraft and aerospace industry remains at an economic disadvantage to most other states. 26 other states have a sales tax exemption for aircraft parts and labor. Texas laws limit the exemption to “commercial carriers” only, which excludes many Texas aerospace employers. Most general aviation aircraft must leave Texas for maintenance service and other work, taking high-paying aviation jobs to those other states, as well. General aviation alone accounts for $14.6 billion in total economic impact annually in Texas. Combined with business inventory tax reforms, Texas could realize a significant increase in aviation jobs and economic impact if the legislature addresses these two tax impediments to job growth and investment.