[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3608 Reported in House (RH)]

<DOC>





                                                 Union Calendar No. 618
114th CONGRESS
  2d Session
                                H. R. 3608

                          [Report No. 114-793]

 To amend the Internal Revenue Code of 1986 to exempt amounts paid for 
     aircraft management services from the excise taxes imposed on 
                         transportation by air.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 24, 2015

 Mr. Tiberi (for himself, Mr. Renacci, Mr. Kelly of Pennsylvania, Mrs. 
   Beatty, Mr. Stivers, Mr. Wenstrup, and Mr. Pompeo) introduced the 
 following bill; which was referred to the Committee on Ways and Means

                           September 27, 2016

Additional sponsors: Ms. Wilson of Florida, Mr. Graves of Missouri, Mr. 
                   Collins of New York, and Mr. Reed

                           September 27, 2016

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]
    [For text of introduced bill, see copy of bill as introduced on 
                          September 24, 2015]


_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to exempt amounts paid for 
     aircraft management services from the excise taxes imposed on 
                         transportation by air.


 


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

SECTION 1. AMOUNTS PAID FOR AIRCRAFT MANAGEMENT SERVICES.

    (a) In General.--Section 4261(e) of the Internal Revenue Code of 
1986 is amended by adding at the end the following new paragraph:
            ``(5) Amounts paid for aircraft management services.--
                    ``(A) In general.--No tax shall be imposed by this 
                section or section 4271 on any amounts paid by an 
                aircraft owner for aircraft management services related 
                to--
                            ``(i) maintenance and support of the 
                        aircraft owner's aircraft; or
                            ``(ii) flights on the aircraft owner's 
                        aircraft.
                    ``(B) Aircraft management services.--For purposes 
                of subparagraph (A), the term `aircraft management 
                services' includes assisting an aircraft owner with 
                administrative and support services, such as 
                scheduling, flight planning, and weather forecasting; 
                obtaining insurance; maintenance, storage and fueling 
                of aircraft; hiring, training, and provision of pilots 
                and crew; establishing and complying with safety 
                standards; or such other services necessary to support 
                flights operated by an aircraft owner.
                    ``(C) Lessee treated as aircraft owner.--
                            ``(i) In general.--For purposes of this 
                        paragraph, the term `aircraft owner' includes a 
                        person who leases the aircraft other than under 
                        a disqualified lease.
                            ``(ii) Disqualified lease.--For purposes of 
                        clause (i), the term `disqualified lease' means 
                        a lease from a person providing aircraft 
                        management services with respect to such 
                        aircraft (or a related person (within the 
                        meaning of section 465(b)(3)(C)) to the person 
                        providing such services), if such lease is for 
                        a term of 31 days or less.
                    ``(D) Pro rata allocation.--If any amount paid to a 
                person represents in part an amount paid for services 
                not described in subparagraph (A), the tax imposed by 
                subsection (a), if applicable to such amount, shall be 
                applied to such payment on a pro rata basis.
                    ``(E) Certain payments treated as made by aircraft 
                owner.--In the case of an aircraft owner which is 
                wholly-owned by another person, amounts paid by such 
                other person on behalf of such aircraft owner shall be 
                treated for purposes of this paragraph as having been 
                paid directly by such aircraft owner.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to amounts paid after the date of the enactment of this Act.
                                                 Union Calendar No. 618

114th CONGRESS

  2d Session

                               H. R. 3608

                          [Report No. 114-793]

_______________________________________________________________________

                                 A BILL

 To amend the Internal Revenue Code of 1986 to exempt amounts paid for 
     aircraft management services from the excise taxes imposed on 
                         transportation by air.

_______________________________________________________________________

                           September 27, 2016

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed