Charter & Fractional
Tax Bill Provision Eliminates FET on Aircraft Mgmt Fees
Provision directly responds to a March 2012 IRS Chief Counsel Advice Memorandum that concluded management fees were subject to 7.5 percent tax.

Aircraft management services would not be subject to air transportation taxes under revisions made by the Senate Finance Committee to S.321, the Tax Cuts and Jobs Act. The provision, which was sought by NATA, was inserted into the tax bill.