(a) There is exempt from sales or use tax, the sale, use, storage or consumption of aircraft owned or leased by commercial interstate or international air carriers, and parts, accessories, materials and supplies sold to or used by commercial interstate or international air carriers for use exclusively in servicing and maintaining such carriers' aircraft, which aircraft are used principally in interstate or international commerce. This exemption shall not apply to fuel and other petroleum products or to shop equipment and tools.

(b) There is exempt from the tax imposed by this chapter the gross proceeds of and payments on all leases and rentals of tangible personal property owned by an airport authority or authority, as defined in § 42-3-102 or § 42-4-103, respectively, to a business primarily engaged in the repair of aircraft owned or leased by commercial interstate or international air carriers; provided, that this exemption shall apply only with respect to tangible personal property primarily used by such businesses at an airport as defined in § 42-3-102 or § 42-4-103. This exemption only applies to leases by an airport authority or authority and not to subleases by a lessee.

(c)

(1) There is exempt from sales or use tax, the sale, use, storage, or consumption of parts, components, software, systems, accessories, materials, equipment, and supplies that are sold to or sold by an authorized large aircraft service facility or affiliate, including, but not limited to:

(A) The sale by an authorized large aircraft service facility or affiliate of, and the corresponding use and consumption of, guaranty, warranty, or service contracts for or in connection with the performance of repair and refurbishment services of large aircraft mainframes, large aircraft engine equipment, and large aircraft accessories; and

(B) The replacement, installation, sale, use, storage, or consumption of parts, components, software, systems, accessories, materials, equipment, and supplies pursuant to the terms of any such guaranty, warranty, or service contracts.

(2) The exemption provided in this subsection (c) shall not apply to fuel and other petroleum products or to shop equipment and tools.

(3) As used in this subsection (c):

(A) “Affiliate” means a company owned and controlled by or under the common ownership and control of and conducting business at such authorized large aircraft service facility;

(B) “Authorized large aircraft service facility” means a repair station located within this state that is engaged in repair and refurbishment services of large aircraft mainframes, large aircraft engine equipment, and large aircraft accessories under a valid air agency certificate issued by the federal aviation administration in accordance with 14 CFR Part 145 of the federal aviation regulations, with an authorized class rating of Air Frame Class IV, and organization designation authority, or such other similar or successor certificate, rating, and authority as the federal aviation administration may provide for from time to time;

(C) “Large aircraft” means any aircraft that has a certified maximum take-off weight of twelve thousand five hundred pounds (12,500 lbs.) or greater;

(D) “Large aircraft accessories” means any accessories, appurtenances, equipment, software, systems, or components for installation in or use in connection with any large aircraft mainframes or large aircraft engines;

(E) “Large aircraft engine equipment” means any aircraft engine, including all associated parts, appurtenances, and accessories, for the propulsion of a large aircraft mainframe;

(F) “Large aircraft mainframes” means any aircraft body, wing, tail assembly, aileron, rudder, landing gear, engine housing, and any other assembly or component integral to the aerodynamic structure of large aircraft; and

(G) “Repair and refurbishment services” includes, but is not limited to, testing, inspections, interior completions, refurbishments, installations, painting, modifications, repairs, maintenance, or overhaul of large aircraft mainframes, large aircraft engine equipment, and large aircraft accessories.