Finance, Taxes, Insurance
NBAA Lauds IRS Rule Exempting Managed Aircraft from FET
NBAA is praising issuance of a pre-publication final rule by the U.S. IRS that clearly exempts managed business aircraft from federal excise taxes.

NBAA is praising issuance of a pre-publication final rule by the U.S. Internal Revenue Service (IRS) that clearly exempts owners who conduct flights on their own aircraft with a management company’s assistance from paying the 7.5 percent federal excise tax (FET) for commercial flights. The Tax Cuts and Jobs Act (TCJA) passed in 2017 included language specifying this exemption, but now the IRS’s final rule, which is pending publication in the Federal Register, will codify it.