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.

Bill: 114-hr-3608
Sponsor: full_name: Rep. Tiberi, Patrick J. [R-OH-12]
Introduced: 2015-09-24
Policy area: Taxation
Subjects: Aviation and airports

Sales and excise taxes

Transportation safety and security
Latest action: action_date: 2016-09-27
text: Placed on the Union Calendar, Calendar No. 618.

Summaries:
action_date: 2015-09-24
action_desc: Introduced in House
text: <p>This bill amends the Internal Revenue Code to exempt from the excise tax on transportation of persons by air&nbsp;amounts paid by an aircraft owner or lessee for aircraft management services related to maintenance and support of the aircraft or flights on such aircraft. </p>

action_date: 2016-09-27
action_desc: Reported to House with amendment(s)
text: <p>(Sec. 1) This bill amends the Internal Revenue Code to exempt from the excise tax on transportation of persons and property by air&nbsp;amounts paid by an aircraft owner or lessee for aircraft management services related to maintenance and support of the aircraft or flights on such aircraft. </p> <p>Aircraft management services include assisting an aircraft owner with administrative and support services; obtaining insurance; maintenance, storage and fueling of aircraft; hiring, training, and provision of pilots and crew; establishing and complying with safety standards; or other services necessary to support flights operated by an aircraft owner.</p> <p>In the case of an aircraft owner that is wholly-owned by another person, amounts paid by the other person on behalf of the aircraft owner must be treated as having been paid directly by the aircraft owner.</p>

tv_txt: I 114th CONGRESS 1st Session H. R. 3608 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.

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: (5) Amounts paid for aircraft management 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 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 services 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 insurance; maintenance, storage and fueling of aircraft; hiring, training, and provision of pilots and crew; establishing 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 purposes of clause (i), the term disqualified lease means a lease from a person providing 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 subparagraph (A), the tax imposed by subsection (a), if applicable to such amount, shall be applied 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.

tv_txt: IB Union Calendar No. 618 114th CONGRESS 2d Session H. R. 3608 [Report No. 114–793] 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 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.

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 management 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 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 services 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 insurance; maintenance, storage and fueling of aircraft; hiring, training, and provision of pilots and crew; establishing 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 purposes of clause (i), the term disqualified lease means a lease from a person providing 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 subparagraph (A), the tax imposed by subsection (a), if applicable to such amount, shall be applied to such payment on a pro rata basis. (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.

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