'Hawaizaada' has been directed by Vibhu Puri and stars Ayushmann Khurrana, Mithun Chakraborty and Pallavi Sharda in pivotal roles.
The decision to make the film tax free was taken at the cabinet meeting chaired by Chief Minister Akhilesh Yadav, an official spokesman said here.
Welcoming the decision Puri said, "I am thankful to the authorities for this grant. It took me almost five years to put my vision on the big screen. Now, I am sure the film will get its full potential reach in the state of Uttar Pradesh."
"'Hawaizaada' has been granted tax free status in Uttar Pradesh," Ayushmann posted on twitter.
Presented by Reliance Entertainment, 'Hawaizaada' is set in 1895 and inspired from the life and works of Shivkar Talpade, who flew the first ever unmanned plane eight years before the Wright Brothers.
The film is scheduled for release on January 30.