[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 2530 Introduced in Senate (IS)]

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114th CONGRESS
  2d Session
                                S. 2530

To amend the Internal Revenue Code of 1986 to modify the exemption for 
    certain aircraft from the excise taxes on transportation by air.


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                   IN THE SENATE OF THE UNITED STATES

                           February 10, 2016

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

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                                 A BILL


 
To amend the Internal Revenue Code of 1986 to modify the exemption for 
    certain aircraft from the excise taxes 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. SHORT TITLE.

    This Act may be cited as the ``Small Aircraft Tax Modification Act 
of 2016''.

SEC. 2. MODIFICATION OF EXCISE TAX EXEMPTION FOR SMALL AIRCRAFT ON 
              ESTABLISHED LINES.

    (a) In General.--Section 4281 of the Internal Revenue Code of 1986 
is amended--
            (1) in subsection (a), by striking ``6,000 pounds or less'' 
        and inserting ``12,500 pounds or less'', and
            (2) by striking subsection (c) and inserting the following:
    ``(c) Established Line.--For purposes of this section, an aircraft 
shall not be considered as operated on an established line if such 
aircraft is performing an on-demand operation (as defined in section 
110.2 of title 14, Code of Federal Regulations, as in effect on the 
date of the enactment of the Small Aircraft Tax Modification Act of 
2016).''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable transportation provided after the date of the 
enactment of this Act.
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