State Representative Joey Andrews is one of the sponsors of legislation that would give some tax breaks to small airports and related businesses.

House Bills 4119 and 4120 would amend Michigan’s General Sales Tax Act and Use Tax Act to exempt the sale or purchase of certain aviation equipment. Andrews tells us this could benefit small airports.

“Creating incentives for small aircraft, like equipment, production, fuel,” Andrews said. “Battle Creek has a small airport, just like Benton Harbor does, and I think that was why I was invited to be a part of this package. We were having discussions about what can small airports do. Well, servicing small aircraft is definitely part of it. A lot of small airports have small aircraft manufacturers nearby.”

Andrews says the package would specifically remove taxes on smaller aircraft equipment. He calls this the kind of targeted tax break that he usually supports.

“It’s something else that we can look at, and we need all the opportunities we can get.”

The legislation has been introduced to the Michigan House Finance Committee and is awaiting a hearing. Andrews says he hasn’t yet spoken with the Southwest Michigan Regional Airport about the package, but it’s intended to help airports like it.

It’s estimated the tax exemptions would reduce state sales and use tax revenue by about $4 million to $5 million per year.