I 
114TH CONGRESS 
1ST SESSION H. R. 3608 
To amend the Internal Revenue Code of 1986 to exempt amounts paid 
for aircraft management services from the excise taxes imposed on trans-
portation 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 
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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. AMOUNTS PAID FOR AIRCRAFT MANAGEMENT 
SERVICES. 
(a) IN GENERAL.—Subsection (e) of section 4261 of 
the Internal Revenue Code of 1986 is amended by adding 
at the end the following new paragraph: 
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‘‘(5) AMOUNTS PAID FOR AIRCRAFT MANAGE-
MENT SERVICES.— 
‘‘(A) IN GENERAL.—No tax shall be im-
posed by this section or section 4271 on any 
amounts paid by an aircraft owner for aircraft 
management services related to— 
‘‘(i) maintenance and support of the 
aircraft owner’s aircraft; or 
‘‘(ii) flights on the aircraft owner’s 
aircraft. 
‘‘(B) 
AIRCRAFT
MANAGEMENT
SERV-
ICES.—For purposes of subparagraph (A), the 
term ‘aircraft management services’ includes 
assisting an aircraft owner with administrative 
and support services, such as scheduling, flight 
planning, and weather forecasting; obtaining in-
surance; maintenance, storage and fueling of 
aircraft; hiring, training, and provision of pilots 
and crew; establishing and complying with safe-
ty standards; or such other services necessary 
to support flights operated by an aircraft 
owner. 
‘‘(C) LESSEE
TREATED
AS
AIRCRAFT 
OWNER.— 
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‘‘(i) IN
GENERAL.—For purposes of 
this paragraph, the term ‘aircraft owner’ 
includes a person who leases the aircraft 
other than under a disqualified lease. 
‘‘(ii) DISQUALIFIED LEASE.—For pur-
poses of clause (i), the term ‘disqualified 
lease’ means a lease from a person pro-
viding aircraft management services with 
respect to such aircraft (or a related per-
son 
(within 
the 
meaning 
of 
section 
465(b)(3)(C)) to the person providing such 
services), if such lease is for a term of 31 
days or less. 
‘‘(D) PRO
RATA
ALLOCATION.—If any 
amount paid to a person represents in part an 
amount paid for services not described in sub-
paragraph (A), the tax imposed by subsection 
(a), if applicable to such amount, shall be ap-
plied to such payment on a pro rata basis.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to amounts paid beginning after 
the date of the enactment of this Act. 
Æ 
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