II

107TH CONGRESS

1ST SESSION S. 1410

To amend the Internal Revenue Code of 1986 to clarify the excise tax

exemptions for aerial applicators of fertilizers or other substances.

IN THE SENATE OF THE UNITED STATES

SEPTEMBER 6, 2001

Mr. COCHRAN (for himself, and Mrs. LINCOLN, Mr. BREAUX, and Mr. LUGAR)

introduced the following bill; which was read twice and referred to the

Committee on Finance

A BILL

To amend the Internal Revenue Code of 1986 to clarify

the excise tax exemptions for aerial applicators of fertilizers or other substances.

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

3 SECTION 1. CLARIFICATION OF EXCISE TAX EXEMPTIONS

4 FOR AGRICULTURAL AERIAL APPLICATORS.

5 (a) NO WAIVER BY FARM OWNER, TENANT, OR OP6 ERATOR NECESSARY.—Subparagraph (B) of section

7 6420(c)(4) of the Internal Revenue Code of 1986 (relating

8 to certain farming use other than by owner, etc.) is

9 amended to read as follows:
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•S 1410 IS

1 ‘‘(B) if the person so using the gasoline is

2 an aerial or other applicator of fertilizers or

3 other substances and is the ultimate purchaser

4 of the gasoline, then subparagraph (A) of this

5 paragraph shall not apply and the aerial or

6 other applicator shall be treated as having used

7 such gasoline on a farm for farming purposes.’’.

8 (b) EXEMPTION INCLUDES FUEL USED BETWEEN

9 AIRFIELD AND FARM.—Section 6420(c)(4) of the Internal

10 Revenue Code of 1986, as amended by subsection (a), is

11 amended by adding at the end the following new flush sen12 tence:

13 ‘‘For purposes of this paragraph, in the case of an

14 aerial applicator, gasoline shall be treated as used on

15 a farm for farming purposes if the gasoline is used

16 for the direct flight between the airfield and 1 or

17 more farms.’’.

18 (c) EXEMPTION FROM TAX ON AIR TRANSPOR19 TATION OF PERSONS FOR FORESTRY PURPOSES EX20 TENDED TO FIXED-WING AIRCRAFT.—Subsection (f) of

21 section 4261 of the Internal Revenue Code of 1986 (relat22 ing to tax on air transportation of persons) is amended

23 to read as follows:
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1 ‘‘(f) EXEMPTION FOR CERTAIN USES.—No tax shall

2 be imposed under subsection (a) or (b) on air

3 transportation—

4 ‘‘(1) by helicopter for the purpose of trans5 porting individuals, equipment, or supplies in the ex6 ploration for, or the development or removal of, hard

7 minerals, oil, or gas, or

8 ‘‘(2) by helicopter or by fixed-wing aircraft for

9 the purpose of the planting, cultivation, cutting, or

10 transportation of, or caring for, trees (including log11 ging operations),

12 but only if the helicopter or fixed-wing aircraft does not

13 take off from, or land at, a facility eligible for assistance

14 under the Airport and Airway Development Act of 1970,

15 or otherwise use services provided pursuant to section

16 44509 or 44913(b) or subchapter I of chapter 471 of title

17 49, United States Code, during such use. In the case of

18 helicopter transportation described in paragraph (1), this

19 subsection shall be applied by treating each flight segment

20 as a distinct flight.’’.

21 (d) EFFECTIVE DATE.—The amendments made by

22 this section shall apply to fuel use or air transportation

23 after the date of the enactment of this Act.

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