Tax rebate for jet owners could spur Idaho company

Rep. John Rusche

Idaho lawmakers hope a proposed sales tax rebate up for debate in the House will prompt an aircraft maintenance company to expand.

A bill being pushed by Lewiston Democratic Rep. John Rusche and Star Republican Mike Moyle would allow owners of big corporate jets to claim a tax rebate on parts installed in Idaho.

Western Aircraft, an aircraft service company in Boise, says it could add up to 10 employees, if such a rebate were offered. Other states offer similar breaks and Western Aircraft says that gives them a competitive advantage.

Just how much the rebate would reduce state tax revenue isn’t clear.

In 2009, Idaho collected almost $193,000 in taxes on parts installed on out-of-state jets. But since many corporate jet owners live in states with higher taxes than Idaho, Rusche says it’s unlikely they’d claim the Idaho rebate because then they’d have to pay more to their own governments. (AP)

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