disqualified lease
(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— (i) assisting an aircraft owner with administrative and support services, such as scheduling, flight planning, and weather forecasting, (ii) obtaining insurance, (iii) maintenance, storage and fueling of aircraft, (iv) hiring, training, and provision of pilots and crew, (v) establishing and complying with safety standards, and (vi) such other services as are 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 In the case of amounts paid to any person which (but for this subsection) are subject to the tax imposed by subsection (a), a portion of which consists of amounts described in subparagraph (A), this paragraph shall apply on a pro rata basis only to the portion which consists of amounts described in such subparagraph.