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 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 
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] 
VerDate Sep 11 2014 
20:13 Sep 27, 2016
Jkt 059200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6652
E:\BILLS\H3608.RH
H3608
sradovich on DSK3GMQ082PROD with BILLS
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.—Section 4261(e) of the Internal 
Revenue Code of 1986 is amended by adding at the end 
the following new paragraph: 
‘‘(5) AMOUNTS
PAID
FOR
AIRCRAFT
MANAGE-
MENT SERVICES.— 
‘‘(A) IN GENERAL.—No tax shall be imposed 
by this section or section 4271 on any amounts 
paid by an aircraft owner for aircraft manage-
ment services related to— 
‘‘(i) maintenance and support of the 
aircraft owner’s aircraft; or 
‘‘(ii) flights on the aircraft owner’s air-
craft. 
‘‘(B) AIRCRAFT MANAGEMENT SERVICES.— 
For purposes of subparagraph (A), the term ‘air-
craft management services’ includes assisting an 
aircraft owner with administrative and support 
services, such as scheduling, flight planning, and 
weather forecasting; obtaining insurance; main-
tenance, storage and fueling of aircraft; hiring, 
training, and provision of pilots and crew; estab-
VerDate Sep 11 2014 
20:13 Sep 27, 2016
Jkt 059200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6203
E:\BILLS\H3608.RH
H3608
sradovich on DSK3GMQ082PROD with BILLS
lishing and complying with safety standards; or 
such other services necessary to support flights 
operated by an aircraft owner. 
‘‘(C) 
LESSEE
TREATED
AS
AIRCRAFT 
OWNER.— 
‘‘(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 person 
(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. 
VerDate Sep 11 2014 
20:13 Sep 27, 2016
Jkt 059200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6203
E:\BILLS\H3608.RH
H3608
sradovich on DSK3GMQ082PROD with BILLS
‘‘(E) CERTAIN
PAYMENTS
TREATED
AS 
MADE BY AIRCRAFT OWNER.—In the case of an 
aircraft owner which is wholly-owned by another 
person, amounts paid by such other person on 
behalf of such aircraft owner shall be treated for 
purposes of this paragraph as having been paid 
directly by such aircraft owner.’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to amounts paid after the date of the 
enactment of this Act. 
VerDate Sep 11 2014 
20:13 Sep 27, 2016
Jkt 059200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6203
E:\BILLS\H3608.RH
H3608
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 
exempt amounts paid for aircraft management 
services from the excise taxes imposed on trans-
portation by air. 
SEPTEMBER 27, 2016 
Reported with an amendment, committed to the Com-
mittee of the Whole House on the State of the Union, 
and ordered to be printed 
VerDate Sep 11 2014 
20:13 Sep 27, 2016
Jkt 059200
PO 00000
Frm 00006
Fmt 6651
Sfmt 6651
E:\BILLS\H3608.RH
H3608
sradovich on DSK3GMQ082PROD with BILLS