2. Airport equipment.--As reported, H.R. 2739 would
clarify (specify) that security equipment eligible for AIP
funding includes explosive detection devices and universal
access systems.

3. Noise abatement program.--As reported, H.R. 2739 would
make permanent the existing authorization for soundproofing of
certain residential buildings.

IV. Possible Trust Fund Option

Adopt amendments to the Trust Fund statute to:

(1) allow expenditures from the Trust Fund for the
purposes provided in H.R. 2739 and H.R. 2820; and

(2) extend authority to make expenditures from the Trust
Fund through September 30, 1996 (fiscal year 1996).



Table 1.--Airport and Airway Trust Fund Program
Authorizations, Fiscal Years 1993-1996

(millions of dollars)

Program 1993 1994 1995 1996

(Present Law) (Projected)

H 739
Airport Improvement Program (AIP) 1,800 2,105 2,161 2,214
Facilities & Equipment (F&E) 2,350 2,524 2,670 2,735
Operations & Maintenance (O&M) 2,273 1,725 1,745 1,803
Small Community Air Service 39 39 39 39
Rental Payments (GSA lease) —__ 30 —37 —_38 __39
Subtotal (H.R. 2739) 6,498 6,430 6,653 6,830

R. 2820

Research, Engineering, and
Development (H.R. 2820)

Iv

250 275 30
6,680

Total Trust Fund

5 |

These authorizations are subject to appropriations. Thus,
the amounts actually spent on aviation programs could be
smaller than the amounts shown above. The uncommitted balances
in the Trust Fund at the end of fiscal years 1994, 1995 and
1996, respectively, will depend upon the amounts actually
appropriated and the Trust Fund revenues actually received.
Further, the uncommitted balance in fiscal year 1996 will be
affected by whether or not (and at what level) the Trust Fund
taxes are extended beyond their current expiration date of
December 31, 1995. “

M tion st e: i rogr:
1. Limit on FAA operations amounts. --As reported, H.R.

2739 would reduce the current overall limit on Trust Fund
financing of the FAA budget from a maximum of 75 percent to 70
percent for each fiscal year. Further, the Trust Fund amount
for FAA operations and maintenance could not exceed 50 percent
of the amounts appropriated each year for airport improvements,
airway facilities and equipment, and research and development.
(The intent of this provision is to limit the portion of Trust
Fund spending to approximately one-third for FAA operations and
maintenance (O&M) and two-thirds for FAA's capital-related
programs (AIP, F&E, and R&D) .)


Joint Committee on Taxation
October 5, 1993
JCX-12-93

MARKUP OF WAYS AND MEANS COMMITTEE
AMENDMENT TO H.R. 2739 (AVIATION
INFRASTRUCTURE INVESTMENT ACT OF 1993)

(Scheduled for October 6, 1993)

I. Legislative Background

H.R. 2739 ("Aviation Infrastructure Investment Act of
1993") was reported by the House Committee on Public Works and
Transportation ("Public Works") on September 14, 1993 (H. Rept.
103-240). The bill, as reported, amends the Airport and Airway
Improvement Act of 1982 (as amended in 1987, 1990, and 1992) to
provide airport and aviation program authorizations for the
Department of Transportation and the Federal Aviation
Administration (FAA) (other than research and development (R&D)
for fiscal years 1994, 1995, and 1996). (H.R. 2739 modifies
existing authorizations for fiscal years 1994 and 1995, and
adds authorizations for fiscal year 1996.)

The House Committee on Science, Space, and Technology
("Science and Technology") reported H.R. 2820 ("Federal
Aviation Administration Research, Engineering, and Development
Authorization Act of 1993") on August 31, 1993 (H. Rept. 103-
225). H.R. 2820 provides authorizations for R&D programs for
fiscal years 1994, 1995, and 1996. Science and Technology
expects to offer the provisions of H.R. 2820 as an amendment to
H.R. 2739, when H.R. 2739 is considered by the House. (H.R.
2820 modifies existing authorizations for fiscal year 1994, and
adds R&D authorizations for fiscal years 1995 and 1996.)

Public Works has requested that the Committee on Ways and
Means ("Ways and Means") provide a conforming amendment to the
Airport and Airway Trust Fund ("Trust Fund") provisions in the
Internal Revenue Code (sec. 9502) to reflect the proposed
authorizations from the Trust Fund. Public Works is not
requesting any changes in, or further extension of, the
aviation excise taxes at this time.


II. Present Law

Aviation excise taxes; transfer of revenues to the Airport and
Airway Tru: Fund

Aviation Trust Fund taxes

Under present law, aviation excise taxes for the Trust
Fund are imposed as follows: 10-percent air passenger ticket
tax; 6.25-percent air cargo tax; $6.00 per person international
departure tax; and, fuels taxes for noncommercial aviation
(15-cents-per-gallon tax on gasoline and 17.5-cents-per-gallon
tax on jet fuel). These Trust Fund taxes are scheduled to
expire after December 31, 1995.

The Omnibus Budget Reconciliation Act of 1990 ("1990 Act")
provided for increases in the air passenger tax from 8 percent
to 10 percent, the air cargo tax from 5 percent to 6.25
percent, the gasoline tax for noncommercial aviation from 12
cents to 15 cents per gallon, and the jet fuel tax for
noncommercial aviation from 14 cents to 17.5 cents per gallon.
Under the conference agreement for the 1990 Act, the revenues
from these increases in the aviation taxes were to be retained
in the General Fund through December 31, 1992, and to be
transferred to the Trust Fund for 1993-1995.! For 1993-1995,
all of the above aviation excise tax revenues are to be
credited to the Trust und.

h aviati el

Currently, there is also a tax of 0.1 cent per gallon
imposed on all aviation fuels (commercial and noncommercial),
which is deposited in the Leaking Underground Storage Tank
Trust Fund (through December 31, 1995, when this tax is
scheduled to expire). In addition, the Ommibus Budget
Reconciliation Act of 1993 ("1993 Act") imposed a permanent
4.3-cents-per-gallon tax (beginning on October 1, 1993) on
noncommercial aviation fuels, to be retained in the General
Pund. Effective on October 1, 1995, commercial aviation fuels
will be subject to the 4.3-cents-per-gallon General Fund tax.

' 1990 Act Conference Report (H.Rept. 101-964), pp. 1054-1055.
However, due to a statutory drafting omission in the 1990 Act,
revenues from the increases in the air passenger and air cargo
taxes initially were not retained in the General Fund through 1992
as intended in the conference agreement. A technical correction
was enacted in 1992 (P.L. 102-581) to reflect the intent of the
1990 Act conference agreement, and the appropriate fund adjustment
was made.



Trust Fund expenditure purposes

The present Trust Fund statute (Code sec. 9502(d))
authorizes amounts to be paid out of the Trust Fund for
obligations incurred under the previous airport and airway
authorization Acts from 1970 to 1992 (as those Acts were in
effect on the date of enactment of the Airport and Airway
Safety, Capacity, Noise Improvement and Intermodel
Transportation Act of 1992). Also, amounts are authorized to
be paid out of the Trust Fund for obligations incurred under
the Federal Aviation Act of 1958, as amended, which are
attributable to planning, research and development,
construction, or operations and maintenance of (1) air traffic
control, (2) air navigation, (3) communications, or (4)
supporting services for the airway system.? In addition,
administrative expenses of the Department of Transportation
attributable to Trust Fund-related activities described above
are authorized from the Trust Fund. Trust Fund expenditures
currently are authorized through September 30, 1995.

III. Proposed Airport and Airway Trust Fund
Authorizations for Fiscal Years 1994-1996
(H.R. 2739 and H.R. 2820)

Tru: uthoriz. r:}

H.R. 2739, as reported by Public Works, and H.R. 2820, as
reported by Science and Technology, would provide total Trust
Fund authorizations of $6.7 billion for fiscal year 1994, $6.9
billion for fiscal year 1995, and $7.1 billion for fiscal year
1996, as compared to $6.7 billion for fiscal year 1993.

Table 1 shows the Trust Fund authorization amounts for
fiscal year 1993 under present law and for fiscal
years 1994, 1995, and 1996 under H.R. 2739 and H.R. 2820,
respectively, as reported.

? The Airport and Airway Trust Fund expenditure programs
authorized under present law include: the airport improvement
program (AIP) (airport planning, airport construction and repair,
certain airport terminal facilities, land acquisition, airport-
related equipment, airport noise abatement, and interactive
training programs); airway facilities and equipment (F&E) (FAA air
navigation facilities); research, engineering, and development
(R&D); operations and maintenance (O&M) (FAA air controller
system); small community air service ("essential air service" for
certain small communities); and grants to up to four vocational
institutions for the acquisition of facilities for the advanced
training of maintenance technicians for air carrier aircraft.