[Congressional Record Volume 147, Number 7 (Monday, January 22, 2001)]
[Senate]
[Pages S319-S320]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. INOUYE:
  S. 47. A bill to amend the Internal Revenue Code of 1986 to exempt 
certain helicopter uses from ticket taxes on transportation by air; to 
the Committee on Finance.


               Airport and Airway Trust Fund Legislation

  Mr. INOUYE. Mr. President, I rise to introduce legislation that would 
exempt from the Airport and Airway Trust Fund excise taxes air 
transportation by helicopters of individuals and cargo for the purpose 
of conducting removal and environmental restoration activities relating 
to unexploded ordnance on the island of Kahoolawe.
  The Kahoolawe Island Unexploded Ordnance Clearance and Environmental 
Restoration Project is authorized under Title X of the Fiscal Year 1994 
Department of Defense Appropriations Act. The island of Kahoolawe is 
uninhabited, and it served as a bombing range for the Department of 
Defense until 1990. The Department of Defense is currently in the 
process of cleaning up and restoring Kahoolawe for its eventual return 
to the State of Hawaii by 2003.
  The Airport and Airway Trust Fund excise taxes help support our 
nation's air traffic systems and airport infrastructures. However, 
there are no airports or landing zones on Kahoolawe that receive 
benefits from the Trust Fund. In addition, the taxes place an undue 
burden on the air transportation services provided to the Kahoolawe 
Clearance Project. Compared to a normal airline whose aircraft make 
fewer

[[Page S320]]

trips per day over much longer distances, the services provided to the 
project are very frequent, with many trips over very short distances. I 
urge my colleagues to support this measure.
  Mr. President, I ask unanimous consent that the full text of my bill 
be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 47

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

     SECTION 1. EXEMPTION OF CERTAIN HELICOPTER USES FROM TAXES ON 
                   TRANSPORTATION BY AIR.

       (a) In General.--Section 4261 of the Internal Revenue Code 
     of 1986 (relating to imposition of tax) is amended by 
     redesignating subsection (i) as subsection (j) and by 
     inserting after subsection (h) the following new subsection:
       ``(i) Additional Exemption for Certain Helicopter Uses.--No 
     tax shall be imposed under this section or section 4271 on 
     air transportation by helicopter for the purpose of 
     transporting individuals and cargo to and from sites for the 
     purpose of conducting removal and environmental restoration 
     activities relating to unexploded ordnance.''.
       (b) Conforming Amendment.--Section 4041(l) of the Internal 
     Revenue Code of 1986 is amended by striking ``(f) or (g)'' 
     and inserting ``(f), (g), or (i)''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to transportation beginning after June 30, 1997, 
     and before August 1, 2005.
                                 ______