[Congressional Record Volume 162, Number 56 (Wednesday, April 13, 2016)]
[Senate]
[Page S2049]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 3757. Mr. BROWN submitted an amendment intended to be proposed to 
amendment SA 3679 proposed by Mr. McConnell (for Mr. Thune (for himself 
and Mr. Nelson)) to the bill H.R. 636, to amend the Internal Revenue 
Code of 1986 to permanently extend increased expensing limitations, and 
for other purposes; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. ___. AMOUNTS PAID FOR AIRCRAFT MANAGEMENT SERVICES.

       (a) In General.--Subsection (e) of section 4261 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.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to amounts paid beginning after the date of the 
     enactment of this Act.
                                 ______