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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 (685 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 firstname.lastname@example.org.
- NBAA Welcomes Legislation Resolving Federal Excise Tax Issues for Management Companies
- Sept. 25, 2015
NBAA welcomed the introduction of legislation that makes clear management services provided to assist an aircraft owner in the operation of its aircraft are not subject to the ticket tax imposed on commercial air transportation. Learn more.
- IRS Adjusts Certain Federal Excise Tax Rates for 2015
- December 30, 2014
The IRS recently announced adjustments to certain air transportation excise tax rates for calendar year 2015. While the domestic segment fee will remain at $4.00, the international arrival/departure fee will increase to $17.70, and the Hawaii/Alaska flight fee will increase to $8.90. The federal excise tax on air transportation of persons will remain at 7.5 percent of the “amount paid” for air transportation.
- Grassroots Advocacy Drives Legislation to Resolve Tax Policy on Aircraft Management Companies
- November 14, 2014
A group of NBAA Members, led by several Ohio-based aircraft management companies, has been working with their representatives in Congress to introduce legislation clarifying that flights by aircraft owners with the assistance of a management company are non-commercial. "As an industry, we’re taking two parallel approaches to this issue," said Scott O'Brien, NBAA senior manager for finance and tax policy. "With the regulatory approach, we're talking to the IRS and Treasury Department in Washington and educating government officials about how aircraft management arrangements work. At the same time, we are supporting Member Companies in their legislative approach." Read more.
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