Following up on President Biden’s pledge to make corporate jet users “pay their share" and drawing ire from the business aviation community, the White House yesterday proposed a fivefold phased-in increase of the jet fuel tax for private users and lengthening the depreciation terms for business aircraft. Included in the President's Fiscal Year 2025 budget request, the proposal comes in addition to the White House directive for the IRS to step up audits of business aircraft users to make sure they are properly classifying business and private uses.
The Department of Transportation released a statement saying the budget proposes to “crack down on a corporate jet funding loophole.” Taking a page from past arguments surrounding the business aviation contribution to the National Airspace System, the DOT noted that the system “has largely been disproportionately funded by commercial air passengers.”
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