II 

Calendar No. 10 

112TH CONGRESS 

1ST SESSION S. 340 

[Report No. 112–1] 

To amend the Internal Revenue Code of 1986 to extend the funding and 

expenditure authority of the Airport and Airway Trust Fund, and for 

other purposes. 

IN THE SENATE OF THE UNITED STATES 

FEBRUARY 14, 2011 

Mr. BAUCUS, from the Committee on Finance, reported the following original 

bill; which was read twice and placed on the calendar 

A BILL 

To amend the Internal Revenue Code of 1986 to extend 

the funding and expenditure authority of the Airport 

and Airway Trust Fund, and for other purposes. 

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

3 SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Airport and Airway Trust Fund Reauthorization Act of 

6 2011’’. 


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1 (b) AMENDMENT OF 1986 CODE.—Except as other2 wise expressly provided, whenever in this Act an amend3 ment or repeal is expressed in terms of an amendment 

4 to, or repeal of, a section or other provision, the reference 

5 shall be considered to be made to a section or other provi6 sion of the Internal Revenue Code of 1986. 

7 SEC. 2. EXTENSION OF TAXES FUNDING AIRPORT AND AIR8 WAY TRUST FUND. 

9 (a) FUEL TAXES.—Subparagraph (B) of section 

10 4081(d)(2) is amended by striking ‘‘March 31, 2010’’ and 

11 inserting ‘‘September 30, 2013’’. 

12 (b) TICKET TAXES.— 

13 (1) PERSONS.—Clause (ii) of section 

14 4261(j)(1)(A) is amended by striking ‘‘March 31, 

15 2010’’ and inserting ‘‘September 30, 2013’’. 

16 (2) PROPERTY.—Clause (ii) of section 

17 4271(d)(1)(A) is amended by striking ‘‘March 31, 

18 2010’’ and inserting ‘‘September 30, 2013’’. 

19 (c) EFFECTIVE DATE.—The amendments made by 

20 this section shall take effect on April 1, 2010. 

21 SEC. 3. EXTENSION OF AIRPORT AND AIRWAY TRUST FUND 

22 EXPENDITURE AUTHORITY. 

23 (a) IN GENERAL.—Paragraph (1) of section 9502(d) 

24 is amended— 


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1 (1) by striking ‘‘April 1, 2010’’ in the matter 

2 preceding subparagraph (A) and inserting ‘‘October 

3 1, 2013’’, and 

4 (2) by striking the semicolon at the end of sub5 paragraph (A) and inserting ‘‘or the FAA Air 

6 Transportation Modernization and Safety Improve7 ment Act;’’. 

8 (b) CONFORMING AMENDMENT.—Paragraph (2) of 

9 section 9502(e) is amended by striking ‘‘April 1, 2010’’ 

10 and inserting ‘‘October 1, 2013’’. 

11 (c) EFFECTIVE DATE.—The amendments made by 

12 this section shall take effect on April 1, 2010. 

13 SEC. 4. MODIFICATION OF EXCISE TAX ON KEROSENE USED 

14 IN AVIATION. 

15 (a) RATE OF TAX ON AVIATION-GRADE KER16 OSENE.— 

17 (1) IN GENERAL.—Subparagraph (A) of section 

18 4081(a)(2) is amended by striking ‘‘and’’ at the end 

19 of clause (ii), by striking the period at the end of 

20 clause (iii) and inserting ‘‘, and’’, and by adding at 

21 the end the following new clause: 

22 ‘‘(iv) in the case of aviation-grade ker23 osene, 35.9 cents per gallon.’’. 

24 (2) FUEL REMOVED DIRECTLY INTO FUEL

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1 TION.—Subparagraph (C) of section 4081(a)(2) is 

2 amended to read as follows: 

3 ‘‘(C) TAXES IMPOSED ON FUEL USED IN

4 COMMERCIAL AVIATION.—In the case of avia5 tion-grade kerosene which is removed from any 

6 refinery or terminal directly into the fuel tank 

7 of an aircraft for use in commercial aviation by 

8 a person registered for such use under section 

9 4101, the rate of tax under subparagraph 

10 (A)(iv) shall be 4.3 cents per gallon.’’. 

11 (3) EXEMPTION FOR AVIATION-GRADE KER12 OSENE REMOVED INTO AN AIRCRAFT.—Subsection 

13 (e) of section 4082 is amended— 

14 (A) by striking ‘‘kerosene’’ and inserting 

15 ‘‘aviation-grade kerosene’’, 

16 (B) by striking ‘‘section 

17 4081(a)(2)(A)(iii)’’ and inserting ‘‘section 

18 4081(a)(2)(A)(iv)’’, and 

19 (C) by striking ‘‘KEROSENE’’ in the head20 ing and inserting ‘‘AVIATION-GRADE KER21 OSENE’’. 

22 (4) CONFORMING AMENDMENTS.— 

23 (A) Clause (iii) of section 4081(a)(2)(A) is 

24 amended by inserting ‘‘other than aviation25 grade kerosene’’ after ‘‘kerosene’’. 


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1 (B) The following provisions are each 

2 amended by striking ‘‘kerosene’’ and inserting 

3 ‘‘aviation-grade kerosene’’: 

4 (i) Section 4081(a)(3)(A)(ii). 

5 (ii) Section 4081(a)(3)(A)(iv). 

6 (iii) Section 4081(a)(3)(D). 

7 (C) Subparagraph (D) of section 

8 4081(a)(3) is amended— 

9 (i) by striking ‘‘paragraph (2)(C)(i)’’ 

10 in clause (i) and inserting ‘‘paragraph 

11 (2)(C)’’, and 

12 (ii) by striking ‘‘paragraph (2)(C)(ii)’’ 

13 in clause (ii) and inserting ‘‘paragraph 

14 (2)(A)(iv)’’. 

15 (D) Paragraph (4) of section 4081(a) is 

16 amended— 

17 (i) by striking ‘‘KEROSENE’’ in the 

18 heading and inserting ‘‘AVIATION-GRADE

19 KEROSENE’’, and 

20 (ii) by striking ‘‘paragraph (2)(C)(i)’’ 

21 and inserting ‘‘paragraph (2)(C)’’. 

22 (E) Paragraph (2) of section 4081(d) is 

23 amended by striking ‘‘(a)(2)(C)(ii)’’ and insert24 ing ‘‘(a)(2)(A)(iv)’’. 

25 (b) RETAIL TAX ON AVIATION FUEL.— 


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1 (1) EXEMPTION FOR PREVIOUSLY TAXED

2 FUEL.—Paragraph (2) of section 4041(c) is amend3 ed by inserting ‘‘at the rate specified in subsection 

4 (a)(2)(A)(iv) thereof’’ after ‘‘section 4081’’. 

5 (2) RATE OF TAX.—Paragraph (3) of section 

6 4041(c) is amended to read as follows: 

7 ‘‘(3) RATE OF TAX.—The rate of tax imposed 

8 by this subsection shall be the rate of tax in effect 

9 under section 4081(a)(2)(A)(iv) (4.3 cents per gallon 

10 with respect to any sale or use for commercial avia11 tion).’’. 

12 (c) REFUNDS RELATING TO AVIATION-GRADE KER13 OSENE.— 

14 (1) AVIATION-GRADE KEROSENE USED IN COM15 MERCIAL AVIATION.—Clause (ii) of section 

16 6427(l)(4)(A) is amended by striking ‘‘specified in 

17 section 4041(c) or 4081(a)(2)(A)(iii), as the case 

18 may be,’’ and inserting ‘‘so imposed’’. 

19 (2) KEROSENE USED IN AVIATION.—Paragraph 

20 (4) of section 6427(l) is amended by striking sub21 paragraphs (B) and (C) and inserting the following 

22 new subparagraph: 

23 ‘‘(B) PAYMENTS TO ULTIMATE, REG24 ISTERED VENDOR.—With respect to any ker25 osene used in aviation (other than kerosene to 


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1 which paragraph (6) applies), if the ultimate 

2 purchaser of such kerosene waives (at such time 

3 and in such form and manner as the Secretary 

4 shall prescribe) the right to payment under 

5 paragraph (1) and assigns such right to the ul6 timate vendor, then the Secretary shall pay 

7 (without interest) the amount which would be 

8 paid under paragraph (1) to such ultimate ven9 dor, but only if such ultimate vendor— 

10 ‘‘(i) is registered under section 4101, 

11 and 

12 ‘‘(ii) meets the requirements of sub13 paragraph (A), (B), or (D) of section 

14 6416(a)(1).’’. 

15 (3) AVIATION-GRADE KEROSENE NOT USED IN

16 AVIATION.—Subsection (l) of section 6427 is amend17 ed by redesignating paragraph (5) as paragraph (6) 

18 and by inserting after paragraph (4) the following 

19 new paragraph: 

20 ‘‘(5) REFUNDS FOR AVIATION-GRADE KER21 OSENE NOT USED IN AVIATION.—If tax has been im22 posed under section 4081 at the rate specified in 

23 section 4081(a)(2)(A)(iv) and the fuel is used other 

24 than in an aircraft, the Secretary shall pay (without 

25 interest) to the ultimate purchaser of such fuel an 


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1 amount equal to the amount of tax imposed on such 

2 fuel reduced by the amount of tax that would be im3 posed under section 4041 if no tax under section 

4 4081 had been imposed.’’. 

5 (4) CONFORMING AMENDMENTS.— 

6 (A) Subparagraph (B) of section 

7 4082(d)(2) is amended by striking 

8 ‘‘6427(l)(5)(B)’’ and inserting ‘‘6427(l)(6)(B)’’. 

9 (B) Paragraph (4) of section 6427(i) is 

10 amended— 

11 (i) by striking ‘‘(4)(C) or (5)’’ and in12 serting ‘‘(4)(B) or (6)’’, and 

13 (ii) by striking ‘‘, (l)(4)(C)(ii), and 

14 (l)(5)’’ and inserting ‘‘and (l)(6)’’. 

15 (C) Subsection (l) of section 6427 is 

16 amended by striking ‘‘DIESEL FUEL AND KER17 OSENE’’ in the heading and inserting ‘‘DIESEL

18 FUEL, KEROSENE, AND AVIATION FUEL’’. 

19 (D) Paragraph (1) of section 6427(l) is 

20 amended by striking ‘‘paragraph (4)(C)(i)’’ and 

21 inserting ‘‘paragraph (4)(B)’’. 

22 (E) Paragraph (4) of section 6427(l) is 

23 amended— 

24 (i) by striking ‘‘KEROSENE USED IN

25 AVIATION’’ in the heading and inserting 


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1 ‘‘AVIATION-GRADE KEROSENE USED IN

2 COMMERCIAL AVIATION’’, and 

3 (ii) in subparagraph (A)— 

4 (I) by striking ‘‘kerosene’’ and 

5 inserting ‘‘aviation-grade kerosene’’, 

6 (II) by striking ‘‘KEROSENE

7 USED IN COMMERCIAL AVIATION’’ in 

8 the heading and inserting ‘‘IN GEN9 ERAL’’. 

10 (d) TRANSFERS TO THE AIRPORT AND AIRWAY

11 TRUST FUND.— 

12 (1) IN GENERAL.—Subparagraph (C) of section 

13 9502(b)(1) is amended to read as follows: 

14 ‘‘(C) section 4081 with respect to aviation 

15 gasoline and aviation-grade kerosene, and’’. 

16 (2) TRANSFERS ON ACCOUNT OF CERTAIN RE17 FUNDS.— 

18 (A) IN GENERAL.—Subsection (d) of sec19 tion 9502 is amended— 

20 (i) by striking ‘‘(other than subsection 

21 (l)(4) thereof)’’ in paragraph (2), and 

22 (ii) by striking ‘‘(other than payments 

23 made by reason of paragraph (4) of section 

24 6427(l))’’ in paragraph (3). 

25 (B) CONFORMING AMENDMENTS.— 


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1 (i) Paragraph (4) of section 9503(b) 

2 is amended by striking ‘‘or’’ at the end of 

3 subparagraph (C), by striking the period 

4 at the end of subparagraph (D) and insert5 ing a comma, and by inserting after sub6 paragraph (D) the following new subpara7 graphs: 

8 ‘‘(E) section 4081 to the extent attrib9 utable to the rate specified in clause (ii) or (iv) 

10 of section 4081(a)(2)(A), or 

11 ‘‘(F) section 4041(c).’’. 

12 (ii) Subsection (c) of section 9503 is 

13 amended by striking paragraph (5). 

14 (iii) Subsection (a) of section 9502 is 

15 amended— 

16 (I) by striking ‘‘appropriated, 

17 credited, or paid into’’ and inserting 

18 ‘‘appropriated or credited to’’, and 

19 (II) by striking ‘‘, section 

20 9503(c)(5),’’. 

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

22 this section shall apply to fuels removed, entered, or sold 

23 after March 31, 2011. 

24 (f) FLOOR STOCKS TAX.— 


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1 (1) IMPOSITION OF TAX.—In the case of avia2 tion-grade kerosene fuel which is held on April 1, 

3 2011, by any person, there is hereby imposed a floor 

4 stocks tax on aviation-grade kerosene equal to— 

5 (A) the tax which would have been imposed 

6 before such date on such kerosene had the 

7 amendments made by this section been in effect 

8 at all times before such date, reduced by 

9 (B) the tax imposed before such date on 

10 such kerosene under section 4081 of the Inter11 nal Revenue Code of 1986, as in effect on such 

12 date. 

13 (2) LIABILITY FOR TAX AND METHOD OF PAY14 MENT.— 

15 (A) LIABILITY FOR TAX.—A person hold16 ing aviation-grade kerosene on April 1, 2011, 

17 shall be liable for such tax. 

18 (B) TIME AND METHOD OF PAYMENT.— 

19 The tax imposed by paragraph (1) shall be paid 

20 at such time and in such manner as the Sec21 retary of the Treasury shall prescribe. 

22 (3) TRANSFER OF FLOOR STOCK TAX REVE23 NUES TO TRUST FUNDS.—For purposes of deter24 mining the amount transferred to the Airport and 

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1 section shall be treated as imposed by section 

2 4081(a)(2)(A)(iv) of the Internal Revenue Code of 

3 1986. 

4 (4) DEFINITIONS.—For purposes of this sub5 section— 

6 (A) AVIATION-GRADE KEROSENE.—The 

7 term ‘‘aviation-grade kerosene’’ means aviation8 grade kerosene as such term is used within the 

9 meaning of section 4081 of the Internal Rev10 enue Code of 1986. 

11 (B) HELD BY A PERSON.—Aviation-grade 

12 kerosene shall be considered as held by a person 

13 if title thereto has passed to such person 

14 (whether or not delivery to the person has been 

15 made). 

16 (C) SECRETARY.—The term ‘‘Secretary’’ 

17 means the Secretary of the Treasury or the 

18 Secretary’s delegate. 

19 (5) EXCEPTION FOR EXEMPT USES.—The tax 

20 imposed by paragraph (1) shall not apply to any 

21 aviation-grade kerosene held by any person exclu22 sively for any use to the extent a credit or refund 

23 of the tax is allowable under the Internal Revenue 

24 Code of 1986 for such use. 


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1 (6) EXCEPTION FOR CERTAIN AMOUNTS OF

2 AVIATION-GRADE KEROSENE.— 

3 (A) IN GENERAL.—No tax shall be im4 posed by paragraph (1) on any aviation-grade 

5 kerosene held on April 1, 2011, by any person 

6 if the aggregate amount of such aviation-grade 

7 kerosene held by such person on such date does 

8 not exceed 2,000 gallons. The preceding sen9 tence shall apply only if such person submits to 

10 the Secretary (at the time and in the manner 

11 required by the Secretary) such information as 

12 the Secretary shall require for purposes of this 

13 subparagraph. 

14 (B) EXEMPT AVIATION-GRADE KER15 OSENE.—For purposes of subparagraph (A), 

16 there shall not be taken into account any avia17 tion-grade kerosene held by any person which is 

18 exempt from the tax imposed by paragraph (1) 

19 by reason of paragraph (5). 

20 (C) CONTROLLED GROUPS.—For purposes 

21 of this subsection— 

22 (i) CORPORATIONS.— 

23 (I) IN GENERAL.—All persons 

24 treated as a controlled group shall be 

25 treated as 1 person. 


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1 (II) CONTROLLED GROUP.—The 

2 term ‘‘controlled group’’ has the 

3 meaning given to such term by sub4 section (a) of section 1563 of the In5 ternal Revenue Code of 1986; except 

6 that for such purposes the phrase 

7 ‘‘more than 50 percent’’ shall be sub8 stituted for the phrase ‘‘at least 80 

9 percent’’ each place it appears in such 

10 subsection. 

11 (ii) NONINCORPORATED PERSONS

12 UNDER COMMON CONTROL.—Under regula13 tions prescribed by the Secretary, prin14 ciples similar to the principles of subpara15 graph (A) shall apply to a group of per16 sons under common control if 1 or more of 

17 such persons is not a corporation. 

18 (7) OTHER LAWS APPLICABLE.—All provisions 

19 of law, including penalties, applicable with respect to 

20 the taxes imposed by section 4081 of the Internal 

21 Revenue Code of 1986 on the aviation-grade ker22 osene involved shall, insofar as applicable and not 

23 inconsistent with the provisions of this subsection, 

24 apply with respect to the floor stock taxes imposed 


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1 by paragraph (1) to the same extent as if such taxes 

2 were imposed by such section. 

3 SEC. 5. AIR TRAFFIC CONTROL SYSTEM MODERNIZATION 

4 ACCOUNT. 

5 (a) IN GENERAL.—Section 9502 is amended by add6 ing at the end the following new subsection: 

7 ‘‘(f) ESTABLISHMENT OF AIR TRAFFIC CONTROL

8 SYSTEM MODERNIZATION ACCOUNT.— 

9 ‘‘(1) CREATION OF ACCOUNT.—There is estab10 lished in the Airport and Airway Trust Fund a sepa11 rate account to be known as the ‘Air Traffic Control 

12 System Modernization Account’ consisting of such 

13 amounts as may be transferred or credited to the 

14 Air Traffic Control System Modernization Account 

15 as provided in this subsection or section 9602(b). 

16 ‘‘(2) TRANSFERS TO AIR TRAFFIC CONTROL

17 SYSTEM MODERNIZATION ACCOUNT.—On October 1, 

18 2011, and annually thereafter the Secretary shall 

19 transfer $400,000,000 to the Air Traffic Control 

20 System Modernization Account from amounts appro21 priated to the Airport and Airway Trust Fund under 

22 subsection (b) which are attributable to taxes on 

23 aviation-grade kerosene. 

24 ‘‘(3) EXPENDITURES FROM ACCOUNT.— 

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1 ernization Account shall be available subject to ap2 propriation for expenditures relating to the mod3 ernization of the air traffic control system (including 

4 facility and equipment account expenditures).’’. 

5 (b) CONFORMING AMENDMENT.—Paragraph (1) of 

6 section 9502(d) is amended by striking ‘‘Amounts’’ and 

7 inserting ‘‘Except as provided in subsection (f), amounts’’. 

8 (c) EFFECTIVE DATE.—The amendments made by 

9 this section shall take effect on the date of the enactment 

10 of this Act. 

11 SEC. 6. TREATMENT OF FRACTIONAL AIRCRAFT OWNER12 SHIP PROGRAMS. 

13 (a) FUEL SURTAX.— 

14 (1) IN GENERAL.—Subchapter B of chapter 31 

15 is amended by adding at the end the following new 

16 section: 

17 ‘‘SEC. 4043. SURTAX ON FUEL USED IN AIRCRAFT PART OF 

18 A FRACTIONAL OWNERSHIP PROGRAM. 

19 ‘‘(a) IN GENERAL.—There is hereby imposed a tax 

20 on any liquid used during any calendar quarter by any 

21 person as a fuel in an aircraft which is— 

22 ‘‘(1) registered in the United States, and 

23 ‘‘(2) part of a fractional ownership aircraft pro24 gram. 


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1 ‘‘(b) AMOUNT OF TAX.—The rate of tax imposed by 

2 subsection (a) is 14.1 cents per gallon. 

3 ‘‘(c) FRACTIONAL OWNERSHIP AIRCRAFT PRO4 GRAM.—For purposes of this section— 

5 ‘‘(1) IN GENERAL.—The term ‘fractional owner6 ship aircraft program’ means a program under 

7 which— 

8 ‘‘(A) a single fractional ownership program 

9 manager provides fractional ownership program 

10 management services on behalf of the fractional 

11 owners, 

12 ‘‘(B) 2 or more airworthy aircraft are part 

13 of the program, 

14 ‘‘(C) there are 1 or more fractional owners 

15 per program aircraft, with at least 1 program 

16 aircraft having more than 1 owner, 

17 ‘‘(D) each fractional owner possesses at 

18 least a minimum fractional ownership interest 

19 in 1 or more program aircraft, 

20 ‘‘(E) there exists a dry-lease aircraft ex21 change arrangement among all of the fractional 

22 owners, and 

23 ‘‘(F) there are multi-year program agree24 ments covering the fractional ownership, frac25 tional ownership program management services, 


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1 and dry-lease aircraft exchange aspects of the 

2 program. 

3 ‘‘(2) MINIMUM FRACTIONAL OWNERSHIP INTER4 EST.— 

5 ‘‘(A) IN GENERAL.—The term ‘minimum 

6 fractional ownership interest’ means, with re7 spect to each type of aircraft— 

8 ‘‘(i) a fractional ownership interest 

equal to or greater than 1 9 ⁄16 of at least 1 

10 subsonic, fixed wing or powered lift pro11 gram aircraft, or 

12 ‘‘(ii) a fractional ownership interest 

equal to or greater than 1 13 ⁄32 of a least 1 

14 rotorcraft program aircraft. 

15 ‘‘(B) FRACTIONAL OWNERSHIP INTER16 EST.—The term ‘fractional ownership interest’ 

17 means— 

18 ‘‘(i) the ownership of an interest in a 

19 program aircraft, 

20 ‘‘(ii) the holding of a multi-year lease21 hold interest in a program aircraft, or 

22 ‘‘(iii) the holding of a multi-year 

23 leasehold interest which is convertible into 

24 an ownership interest in a program air25 craft. 


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1 ‘‘(3) DRY-LEASE AIRCRAFT EXCHANGE.—The 

2 term ‘dry-lease aircraft exchange’ means an agree3 ment, documented by the written program agree4 ments, under which the program aircraft are avail5 able, on an as needed basis without crew, to each 

6 fractional owner. 

7 ‘‘(d) TERMINATION.—This section shall not apply to 

8 liquids used as a fuel in an aircraft after September 30, 

9 2013.’’. 

10 (2) CONFORMING AMENDMENT.—Subsection (e) 

11 of section 4082 is amended by inserting ‘‘(other 

12 than an aircraft described in section 4043(a))’’ after 

13 ‘‘an aircraft’’. 

14 (3) TRANSFER OF REVENUES TO AIRPORT AND

15 AIRWAY TRUST FUND.—Subsection (1) of section 

16 9502(b) is amended by redesignating subparagraphs 

17 (B) and (C) as subparagraphs (C) and (D), respec18 tively, and by inserting after subparagraph (A) the 

19 following new subparagraph: 

20 ‘‘(B) section 4043 (relating to surtax on 

21 fuel used in aircraft part of a fractional owner22 ship program),’’. 

23 (4) CLERICAL AMENDMENT.—The table of sec24 tions for subchapter B of chapter 31 is amended by 

25 adding at the end the following new item: 


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‘‘Sec. 4043. Surtax on fuel used in aircraft part of a fractional ownership program.’’. 

1 (b) FRACTIONAL OWNERSHIP PROGRAMS TREATED

2 AS NON-COMMERCIAL AVIATION.—Subsection (b) of sec3 tion 4083 is amended by adding at the end the following 

4 new sentence: ‘‘For uses of aircraft before October 1, 

5 2013, such term shall not include the use of any aircraft 

6 which is part of a fractional ownership aircraft program 

7 (as defined by section 4043(c)).’’. 

8 (c) EXEMPTION FROM TAX ON TRANSPORTATION OF

9 PERSONS.—Section 4261, as amended by this Act, is 

10 amended by redesignating subsection (j) as subsection (k) 

11 and by inserting after subsection (i) the following new sub12 section: 

13 ‘‘(j) EXEMPTION FOR AIRCRAFT IN FRACTIONAL

14 OWNERSHIP AIRCRAFT PROGRAMS.—No tax shall be im15 posed by this section or section 4271 on any air transpor16 tation provided before October 1, 2013, by an aircraft 

17 which is part of a fractional ownership aircraft program 

18 (as defined by section 4043(c)).’’. 

19 (d) EFFECTIVE DATES.— 

20 (1) SUBSECTION (a).—The amendments made 

21 by subsection (a) shall apply to fuel used after 

22 March 31, 2011. 


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1 (2) SUBSECTION (b).—The amendment made by 

2 subsection (b) shall apply to uses of aircraft after 

3 March 31, 2011. 

4 (3) SUBSECTION (c).—The amendments made 

5 by subsection (c) shall apply to taxable transpor6 tation provided after March 31, 2011. 

7 SEC. 7. TERMINATION OF EXEMPTION FOR SMALL JET AIR8 CRAFT ON NONESTABLISHED LINES. 

9 (a) IN GENERAL.—the first sentence of section 4281 

10 is amended by inserting ‘‘or when such aircraft is a tur11 bine engine powered aircraft’’ after ‘‘an established line’’. 

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

13 this section shall apply to taxable transportation provided 

14 after March 31, 2011. 

15 SEC. 8. TRANSPARENCY IN PASSENGER TAX DISCLOSURES. 

16 (a) IN GENERAL.—Section 7275 (relating to penalty 

17 for offenses relating to certain airline tickets and adver18 tising) is amended— 

19 (1) by redesignating subsection (c) as sub20 section (d), 

21 (2) by striking ‘‘subsection (a) or (b)’’ in sub22 section (d), as so redesignated, and inserting ‘‘sub23 section (a), (b), or (c)’’, and 

24 (3) by inserting after subsection (b) the fol25 lowing new subsection: 


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1 ‘‘(c) NON-TAX CHARGES.— 

2 ‘‘(1) IN GENERAL.—In the case of transpor3 tation by air for which disclosure on the ticket or 

4 advertising for such transportation of the amounts 

5 paid for passenger taxes is required by subsection 

6 (a)(2) or (b)(1)(B), if such amounts are separately 

7 disclosed, it shall be unlawful for the disclosure of 

8 such amounts to include any amounts not attrib9 utable to such taxes. 

10 ‘‘(2) INCLUSION IN TRANSPORTATION COST.— 

11 Nothing in this subsection shall prohibit the inclu12 sion of amounts not attributable to the taxes im13 posed by subsection (a), (b), or (c) of section 4261 

14 in the disclosure of the amount paid for transpor15 tation as required by subsection (a)(1) or (b)(1)(A), 

16 or in a separate disclosure of amounts not attrib17 utable to such taxes.’’. 

18 (b) EFFECTIVE DATE.—The amendments made by 

19 this section shall apply to taxable transportation provided 

20 after March 31, 2011. 

21 SEC. 9. TAX-EXEMPT BOND FINANCING FOR FIXED-WING 

22 EMERGENCY MEDICAL AIRCRAFT. 

23 (a) IN GENERAL.—Subsection (e) of section 147 is 

24 amended by adding at the end the following new sentence: 

25 ‘‘The preceding sentence shall not apply to any fixed-wing 


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1 aircraft equipped for, and exclusively dedicated to pro2 viding, acute care emergency medical services (within the 

3 meaning of 4261(g)(2)).’’ 

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

5 this section shall apply to obligations issued after the date 

6 of the enactment of this Act. 

7 SEC. 10. PROTECTION OF AIRPORT AND AIRWAY TRUST 

8 FUND SOLVENCY. 

9 (a) IN GENERAL.—Paragraph (1) of section 9502(d) 

10 is amended by adding at the end the following new sen11 tence: ‘‘Unless otherwise provided by this section, for pur12 poses of this paragraph for fiscal year 2012 or 2013, the 

13 amount available for making expenditures for such fiscal 

14 year shall not exceed 90 percent of the receipts of the Air15 port and Airway Trust Fund plus interest credited to such 

16 Trust Fund for such fiscal year as estimated by the Sec17 retary of the Treasury.’’. 

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

19 this section shall apply to fiscal years beginning after Sep20 tember 30, 2011. 


srobinson on DSKHWCL6B1PROD with BILLS
Calendar No. 10 

112TH CONGRESS 

1ST SESSION S. 340 

[Report No. 112–1] 

A BILL 

To amend the Internal Revenue Code of 1986 to 

other purposes. the Airport and Airway Trust Fund, and for extend the funding and expenditure authority of 

FEBRUARY 14, 2011 

Read twice and placed on the calendar 


srobinson on DSKHWCL6B1PROD with BILLS