IB 

Union Calendar No. 618 

114TH CONGRESS 

2D SESSION H. R. 3608 

[Report No. 114–793] 

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 

SEPTEMBER 24, 2015 

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

BEATTY, Mr. STIVERS, Mr. WENSTRUP, and Mr. POMPEO) introduced 

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

Means 

SEPTEMBER 27, 2016 

Additional sponsors: Ms. WILSON of Florida, Mr. GRAVES of Missouri, Mr. 

COLLINS of New York, and Mr. REED

SEPTEMBER 27, 2016 

Reported with an amendment, committed to the Committee of the Whole 

House on the State of the Union, and ordered to be printed 

[Strike out all after the enacting clause and insert the part printed in italic] 

[For text of introduced bill, see copy of bill as introduced on September 24, 2015] 


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•HR 3608 RH

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. 


sradovich on DSK3GMQ082PROD with BILLS
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•HR 3608 RH

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.—Section 4261(e) of the Internal 

6 Revenue Code of 1986 is amended by adding at the end 

7 the following new paragraph: 

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

10 ‘‘(A) IN GENERAL.—No tax shall be imposed 

11 by this section or section 4271 on any amounts 

12 paid by an aircraft owner for aircraft manage13 ment services related to— 

14 ‘‘(i) maintenance and support of the 

15 aircraft owner’s aircraft; or 

16 ‘‘(ii) flights on the aircraft owner’s air17 craft. 

18 ‘‘(B) AIRCRAFT MANAGEMENT SERVICES.— 

19 For purposes of subparagraph (A), the term ‘air20 craft management services’ includes assisting an 

21 aircraft owner with administrative and support 

22 services, such as scheduling, flight planning, and 

23 weather forecasting; obtaining insurance; main24 tenance, storage and fueling of aircraft; hiring, 

25 training, and provision of pilots and crew; estabVerDate Sep 11 2014 20:13 Sep 27, 2016 Jkt 059200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6203 E:\BILLS\H3608.RH H3608

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•HR 3608 RH

1 lishing and complying with safety standards; or 

2 such other services necessary to support flights 

3 operated by an aircraft owner. 

4 ‘‘(C) LESSEE TREATED AS AIRCRAFT

5 OWNER.— 

6 ‘‘(i) IN GENERAL.—For purposes of 

7 this paragraph, the term ‘aircraft owner’ 

8 includes a person who leases the aircraft 

9 other than under a disqualified lease. 

10 ‘‘(ii) DISQUALIFIED LEASE.—For pur11 poses of clause (i), the term ‘disqualified 

12 lease’ means a lease from a person pro13 viding aircraft management services with 

14 respect to such aircraft (or a related person 

15 (within the meaning of section 

16 465(b)(3)(C)) to the person providing such 

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

18 days or less. 

19 ‘‘(D) PRO RATA ALLOCATION.—If any 

20 amount paid to a person represents in part an 

21 amount paid for services not described in sub22 paragraph (A), the tax imposed by subsection 

23 (a), if applicable to such amount, shall be ap24 plied to such payment on a pro rata basis. 


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•HR 3608 RH

1 ‘‘(E) CERTAIN PAYMENTS TREATED AS

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

3 aircraft owner which is wholly-owned by another 

4 person, amounts paid by such other person on 

5 behalf of such aircraft owner shall be treated for 

6 purposes of this paragraph as having been paid 

7 directly by such aircraft owner.’’. 

8 (b) EFFECTIVE DATE.—The amendment made by this 

9 section shall apply to amounts paid after the date of the 

10 enactment of this Act. 


sradovich on DSK3GMQ082PROD with BILLS
Union Calendar No. 618 

114TH CONGRESS 

2D SESSION H. R. 3608 

[Report No. 114–793] 

A BILL 

To amend the Internal Revenue Code of 1986 to 

portation by air. services from the excise taxes imposed on transexempt amounts paid for aircraft management 

SEPTEMBER 27, 2016 

Reported with an amendment, committed to the Comand ordered to be printed mittee of the Whole House on the State of the Union, 


sradovich on DSK3GMQ082PROD with BILLS