This section shall not apply to liquids used as a fuel in an aircraft after September 30, 2023.
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26 U.S. Code § 4043 - Surtax on fuel used in aircraft part of a fractional ownership program
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(a) In generalThere is hereby imposed a tax on any liquid used (during any calendar quarter by any person) in a fractional program aircraft as fuel—
with respect to the use of such aircraft on account of such a qualified fractional owner, including use in deadhead service.
(c) Definitions and special rulesFor purposes of this section—
(1) Fractional program aircraftThe term “fractional program aircraft” means, with respect to any fractional ownership aircraft program, any aircraft which—
(2) Fractional ownership aircraft programThe term “fractional ownership aircraft program” means a program under which—
a single fractional ownership program manager provides fractional ownership program management services on behalf of the fractional owners,
(C) with respect to at least 2 fractional program aircraft, none of the ownership interests in such aircraft are—
less than the minimum fractional ownership interest, or
there are multi-year program agreements covering the fractional ownership, fractional ownership program management services, and dry-lease aircraft exchange aspects of the program.
(3) Definitions related to fractional ownership interests
(A) Qualified fractional owner
(B) Minimum fractional ownership interestThe term “minimum fractional ownership interest” means, with respect to each type of aircraft—
a fractional ownership interest equal to or greater than 1/16 of at least 1 subsonic, fixed wing, or powered lift aircraft, or
a fractional ownership interest equal to or greater than 1/32 of at least 1 rotorcraft aircraft.
(C) Fractional ownership interestThe term “fractional ownership interest” means—
the ownership of an interest in a fractional program aircraft,
the holding of a multi-year leasehold interest in a fractional program aircraft, or
the holding of a multi-year leasehold interest which is convertible into an ownership interest in a fractional program aircraft.
(4) Dry-lease aircraft exchange
(5) Special rule relating to use of fractional program aircraft for flight demonstration, maintenance, or training
2018—Subsec. (d). Pub. L. 115–254 substituted “September 30, 2023” for “September 30, 2021”.
Statutory Notes and Related Subsidiaries