Regulations and Government
Fractional Operators Face Sunset of Tax Relief
Congress provided relief as fractional operators were mired in lawsuits with IRS.

Fractional aircraft operators are facing a sunset of tax relief when the current FAA authorization expires on September 30. In the previous FAA reauthorization bill, Congress provided a temporary change in the tax structure for operators, exempting aircraft enrolled in fractional programs from the 7.5-percent air transportation tax. Instead they were subject to the fuel tax along with a 14.1 cent-per-gallon fuel surcharge. The change, which took effect March 31, 2012, included a Sept. 30, 2015 expiration date for relief from the air transportation tax.


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