[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 1109 Introduced in Senate (IS)]







107th CONGRESS
  1st Session
                                S. 1109

 To amend the Internal Revenue Code of 1986 to clarify the excise tax 
 exemptions for aerial applicators of fertilizers or other substances.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             June 27, 2001

  Mr. Cochran (for himself and Mrs. Lincoln) 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 to clarify the excise tax 
 exemptions for aerial applicators of fertilizers or other substances.

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

SECTION 1. CLARIFICATION OF EXCISE TAX EXEMPTIONS FOR AGRICULTURAL 
              AERIAL APPLICATORS.

    (a) No Waiver by Farm Owner, Tenant, or Operator Necessary.--
Subparagraph (B) of section 6420(c)(4) of the Internal Revenue Code of 
1986 (relating to certain farming use other than by owner, etc.) is 
amended to read as follows:
                    ``(B) if the person so using the gasoline is an 
                aerial or other applicator of fertilizers or other 
                substances and is the ultimate purchaser of the 
                gasoline, then subparagraph (A) of this paragraph shall 
                not apply and the aerial or other applicator shall be 
                treated as having used such gasoline on a farm for 
                farming purposes.''.
    (b) Exemption Includes Fuel Used Between Airfield and Farm.--
Section 6420(c)(4) of the Internal Revenue Code of 1986, as amended by 
subsection (a), is amended by adding at the end the following new flush 
sentence:
        ``For purposes of this paragraph, in the case of an aerial 
        applicator, gasoline shall be treated as used on a farm for 
        farming purposes if the gasoline is used for the direct flight 
        between the airfield and 1 or more farms.''.
    (c) Exemption Extended to Use of Aviation Fuel.--
            (1) In general.--Section 6427(c) of the Internal Revenue 
        Code of 1986 (relating to use for farming purposes) is 
        amended--
                    (A) by inserting ``or section 4091'' after 
                ``section 4041(c)'', and
                    (B) by inserting ``or 4091'' after ``section 
                4041''.
            (2) Conforming amendment.--Section 6427(l)(2)(B) of such 
        Code is amended by inserting ``(other than a use described in 
        section 6420(c)(4)(B))'' after ``use''.
    (d) Exemption From Tax on Air Transportation of Persons for 
Forestry Purposes Extended to Fixed-Wing Aerial Applicators.--
Subsection (f) of section 4261 of the Internal Revenue Code of 1986 
(relating to tax on air transportation of persons) is amended to read 
as follows:
    ``(f) Exemption for Certain Uses.--No tax shall be imposed under 
subsection (a) or (b) on air transportation--
            ``(1) by helicopter for the purpose of transporting 
        individuals, equipment, or supplies in the exploration for, or 
        the development or removal of, hard minerals, oil, or gas, or
            ``(2) by helicopter or by fixed-wing aerial applicator of 
        fertilizers or other substances (within the meaning of section 
        6420(c)(4)) for the purpose of the planting, cultivation, 
        cutting, or transportation of, or caring for, trees (including 
        logging operations),
but only if the helicopter or fixed-wing aerial applicator does not 
take off from, or land at, a facility eligible for assistance under the 
Airport and Airway Development Act of 1970, or otherwise use services 
provided pursuant to section 44509 or 44913(b) or subchapter I of 
chapter 471 of title 49, United States Code, during such use. In the 
case of helicopter transportation described in paragraph (1), this 
subsection shall be applied by treating each flight segment as a 
distinct flight.''.
    (e) Effective Date.--The amendments made by this section shall 
apply to fuel use or air transportation after the date of the enactment 
of this Act.
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