A tax change that will be before Utah lawmakers Friday passed the Revenue and Taxation Committee Wednesday morning.
Utah legislators tried in the 2008 Legislature to give an additional tax incentive to local aerospace industries giving them a bigger break on refurbishing airline parts.
But it later proved to have "unintended consequences," said House Majority Assistant Whip Brad Dee, R-Ogden.
Thus, Dee is sponsoring a bill to repeal what the 2008 Legislature did and that bill is expected to pass during a special legislative session Friday called by Gov. Jon Huntsman Jr. to deal with a projected $272 million tax revenue shortfall this fiscal year.
"We tried originally to put a few more industries into" the aerospace tax break position to encourage an already developing industry in Utah, said Dee.
But later legislators and Huntsman found that the change would actually increase taxes for Million Air Inc., one of the Salt Lake City International Airport's main charter air firms.
"It would be a very small tax increase for them, but we didn't want to increase anyone's taxes the point was to give a tax incentive," said Dee.
The original bill would have cost the state around $100,000 in tax revenue, legislative budgeters estimated.
Dee's repeal bill will cost the state about $50,000, Dee said.
"At some later date we may try to visit this again. We want to encourage Gov. Huntsman's aerospace cluster development strategy," said Dee.