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NBAA Federal Excise Taxes Guide
The NBAA Federal Excise Taxes Guide provides the latest information on how federal excise taxes (FET) apply to business aircraft activity. The guide includes details on how FET applies to commercial air transportation of passengers, including the percentage tax on domestic travel and related exceptions and exclusions, domestic segment fees, and the head tax on international transportation.
Key concepts including possession, command and control; available FET exemptions; and charter broker obligations for air transportation excise taxes are explained in the context of business aircraft operations. Rules on FET are constantly evolving and the guide includes updates on topics such as FET on fractional aircraft ownership program operations and IRS legal interpretations regarding aircraft service and pilot service agreements.
The Federal Excise Taxes Guide is a comprehensive but concise reference that provides NBAA Members with summary information about the applicability of excise taxes to common business aircraft operations and scenarios.
Download the NBAA Federal Excise Taxes Guide (725 KB, PDF)
If you have questions or feedback about the NBAA Federal Excise Taxes Guide or related topics, contact NBAA's Scott O'Brien at (202) 783-9451 or [email protected].
- IRS Adjusts 2014 Air Transportation Federal Excise Tax Rates
- November 27, 2013
The IRS announced inflation adjustments to the Federal Excise Tax (FET) rates on air transportation for 2014. The new rates take effect Jan. 1 and are valid for air transportation provided in calendar year 2014. The domestic segment fee is now $4.00; the international arrival/departure fee is $17.50 and the Hawaii/Alaska flight fee is $8.70.
On May 16, 2013, the IRS informally announced that it will suspend the assessment of Federal Transportation Excise Tax (FET) on owner flights on aircraft managed by aircraft management companies. NBAA has numerous resources available to keep members up to date on issues surrounding the IRS chief counsel advice (CCA) memorandum regarding the taxability of aircraft management fees. Learn More about FET Issues for Management Companies