[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 1410 Introduced in Senate (IS)]







106th CONGRESS
  1st Session
                                S. 1410

    To amend the Internal Revenue Code of 1986 with respect to the 
                treatment of certain air transportation.


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                   IN THE SENATE OF THE UNITED STATES

                             July 21, 1999

  Mr. Stevens introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
    To amend the Internal Revenue Code of 1986 with respect to the 
                treatment of certain air transportation.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. AMENDMENT OF THE INTERNAL REVENUE CODE OF 1986.

    Subsection (j) of section 132 of the Internal Revenue Code of 1986 
(relating to certain fringe benefits) is amended by adding at the end 
thereof the following new paragraph:
            ``(9) Special rule for certain noncommercial air 
        transportation.--Notwithstanding any other provision of this 
        section, the term `no-additional-cost service' includes the 
        value of transportation provided to any person on a 
        noncommercially operated aircraft if--
                    ``(A) such transportation is provided on a flight 
                made in the ordinary course of the trade or business of 
                the taxpayer owning or leasing such aircraft for use in 
                such trade or business;
                    ``(B) the flight on which the transportation is 
                provided would have been made whether or not such 
                person was transported on the flight; and
                    ``(C) no substantial additional cost is incurred in 
                providing such transportation to such person.
For purposes of this paragraph, an aircraft is noncommercially operated 
if transportation thereon is not provided or made available to the 
general public by purchase of a ticket or other fare.''.

SEC. 2. EFFECTIVE DATE.

    The amendment made by section 1 shall take effect on January 1, 
2000.
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