II 

109TH CONGRESS 

1ST SESSION S. 688 

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 

APRIL 4, 2005 

Mr. COCHRAN (for himself, Mrs. LINCOLN, 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: 
2 

•S 688 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 transpor3 tation— 

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), but only if the helicopter or fixed12 wing aircraft does not take off from, or land at, a 

13 facility eligible for assistance under the Airport and 

14 Airway Development Act of 1970, or otherwise use 

15 services provided pursuant to section 44509 or 

16 44913(b) or subchapter I of chapter 471 of title 49, 

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

18 helicopter transportation described in paragraph (1), 

19 this subsection shall be applied by treating each 

20 flight segment 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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