Regulations and Government
Industry Advocates Hopeful on Fractional Taxes
A Joint Committee on Taxation report released July 13 provides encouragement that congress expects the current fractional tax treatment to continue.

Business aviation advocates are hopeful that Congress will renew the air transportation tax relief for fractional aircraft owners in the upcoming reauthorization or simply continue it in the case of a short-term extension. Congress in the most recent FAA reauthorization bill exempt fractional program aircraft from the 7.5-percent air transportation tax, instead subjecting them to the fuel tax along with a 14.1-cent-per-gallon fuel surcharge. The air transportation tax relief was set to sunset on September 30, but the fuel surcharge was put in place through 2021.


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