I 

109TH CONGRESS 

1ST SESSION H. R. 1387 

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

exemptions for aerial applicators of fertilizers or other substances. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 17, 2005 

Mr. HERGER (for himself, Mr. BRADY of Texas, Mr. BERRY, Mr. MCCRERY, 

and Mr. COSTA) 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 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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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 aerial 

14 applicator, gasoline shall be treated as used on a farm for 

15 farming purposes if the gasoline is used for the direct 

16 flight between the airfield and 1 or more farms.’’. 

17 (c) EXEMPTION FROM TAX ON AIR TRANSPOR18 TATION OF PERSONS FOR FORESTRY PURPOSES EX19 TENDED TO FIXED-WING AIRCRAFT.—Subsection (f) of 

20 section 4261 of the Internal Revenue Code of 1986 (relat21 ing to tax on air transportation of persons) is amended 

22 to read as follows: 

23 ‘‘(f) EXEMPTION FOR CERTAIN USES.—No tax shall 

24 be imposed under subsection (a) or (b) on air transpor25 tation— 
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1 ‘‘(1) by helicopter for the purpose of trans2 porting individuals, equipment, or supplies in the ex3 ploration for, or the development or removal of, hard 

4 minerals, oil, or gas, or 

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

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

7 transportation of, or caring for, trees (including log8 ging operations), 

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

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

11 under the Airport and Airway Development Act of 1970, 

12 or otherwise use services provided pursuant to section 

13 44509 or 44913(b) or subchapter I of chapter 471 of title 

14 49, United States Code, during such use. In the case of 

15 helicopter transportation described in paragraph (1), this 

16 subsection shall be applied by treating each flight segment 

17 as a distinct flight.’’. 

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

19 this section shall apply to fuel use or air transportation 

20 after the date of the enactment of this Act. 

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