I 

115TH CONGRESS 

1ST SESSION H. R. 896 

To amend the Internal Revenue Code of 1986 to exempt amounts paid 

for aircraft management services from the excise taxes imposed on transportation by air. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 6, 2017 

Mr. TIBERI (for himself, Mrs. BEATTY, Mr. KELLY of Pennsylvania, Mr. 

RENACCI, Mr. STIVERS, and Mr. WENSTRUP) introduced the following 

bill; which was referred to the Committee on Ways and Means 

A BILL 

To amend the Internal Revenue Code of 1986 to exempt 

amounts paid for aircraft management services from the 

excise taxes imposed on transportation by air. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. AMOUNTS PAID FOR AIRCRAFT MANAGEMENT 

4 SERVICES. 

5 (a) IN GENERAL.—Subsection (e) of section 4261 of 

6 the Internal Revenue Code of 1986 is amended by adding 

7 at the end the following new paragraph: 

8 ‘‘(5) AMOUNTS PAID FOR AIRCRAFT MANAGE9 MENT SERVICES.— 


emcdonald on DSK9F6TC42PROD with BILLS
2 

•HR 896 IH

1 ‘‘(A) IN GENERAL.—No tax shall be im2 posed by this section or section 4271 on any 

3 amounts paid by an aircraft owner for aircraft 

4 management services related to— 

5 ‘‘(i) maintenance and support of the 

6 aircraft owner’s aircraft; or 

7 ‘‘(ii) flights on the aircraft owner’s 

8 aircraft. 

9 ‘‘(B) AIRCRAFT MANAGEMENT SERV10 ICES.—For purposes of subparagraph (A), the 

11 term ‘aircraft management services’ includes 

12 assisting an aircraft owner with administrative 

13 and support services, such as scheduling, flight 

14 planning, and weather forecasting; obtaining in15 surance; maintenance, storage and fueling of 

16 aircraft; hiring, training, and provision of pilots 

17 and crew; establishing and complying with safe18 ty standards; or such other services necessary 

19 to support flights operated by an aircraft 

20 owner. 

21 ‘‘(C) LESSEE TREATED AS AIRCRAFT

22 OWNER.— 

23 ‘‘(i) IN GENERAL.—For purposes of 

24 this paragraph, the term ‘aircraft owner’ 


emcdonald on DSK9F6TC42PROD with BILLS
3 

•HR 896 IH

1 includes a person who leases the aircraft 

2 other than under a disqualified lease. 

3 ‘‘(ii) DISQUALIFIED LEASE.—For pur4 poses of clause (i), the term ‘disqualified 

5 lease’ means a lease from a person pro6 viding aircraft management services with 

7 respect to such aircraft (or a related per8 son (within the meaning of section 

9 465(b)(3)(C)) to the person providing such 

10 services), if such lease is for a term of 31 

11 days or less. 

12 ‘‘(D) PRO RATA ALLOCATION.—If any 

13 amount paid to a person represents in part an 

14 amount paid for services not described in sub15 paragraph (A), the tax imposed by subsection 

16 (a), if applicable to such amount, shall be ap17 plied to such payment on a pro rata basis. 

18 ‘‘(E) CERTAIN PAYMENTS TREATED AS

19 MADE BY AIRCRAFT OWNER.—In the case of an 

20 aircraft owner which is wholly-owned by an21 other person, amounts paid by such other per22 son on behalf of such aircraft owner shall be 

23 treated for purposes of this paragraph as hav24 ing been paid directly by such aircraft owner.’’. 


emcdonald on DSK9F6TC42PROD with BILLS
4 

•HR 896 IH

1 (b) EFFECTIVE DATE.—The amendment made by 

2 this section shall apply to amounts paid beginning after 

3 the date of the enactment of this Act. 

Æ 


emcdonald on DSK9F6TC42PROD with BILLS