§4043 — Title 26 Internal Revenue Code | U.S. Code

Summary

Imposes a tax of 14.1 cents per gallon on any liquid used as fuel in a fractional program aircraft when the flight is for transporting a qualified fractional owner or is used because of that owner, including deadhead flights. Fuel used only for flight demonstrations, maintenance, or crew training is not taxed. If a deadhead flight is billed to someone who is not a qualified fractional owner, that fuel is not taxed. The tax stops applying after September 30, 2028. "Fractional program aircraft" = an aircraft listed in the FAA management specs for the program and registered in the United States. "Fractional ownership aircraft program" = a program run by one manager with multiple owners, at least one aircraft having more than one owner, at least two aircraft meeting the minimum-owner rules and not owned by the manager, a dry-lease exchange among owners, and multi-year program agreements. "Qualified fractional owner" = an owner with a minimum share (at least 1/16 of a subsonic fixed-wing or powered-lift aircraft, or at least 1/32 of a rotorcraft). "Fractional ownership interest" = ownership or a multi-year lease (including leases that can convert to ownership). "Fractional owner" = anyone owning any share. "Dry-lease aircraft exchange" = a written agreement letting owners use aircraft as needed without crew.

Title 26, §4043

Internal Revenue Code — Source: USLM XML via OLRC

(a)There is hereby imposed a tax on any liquid used (during any calendar quarter by any person) in a fractional program aircraft as fuel—

(1)for the transportation of a qualified fractional owner with respect to the fractional ownership aircraft program of which such aircraft is a part, or

(2)with respect to the use of such aircraft on account of such a qualified fractional owner, including use in deadhead service.

(b)The rate of tax imposed by subsection (a) is 14.1 cents per gallon.

(c)For purposes of this section—

(1)The term “fractional program aircraft” means, with respect to any fractional ownership aircraft program, any aircraft which—

(A)is listed as a fractional program aircraft in the management specifications issued to the manager of such program by the Federal Aviation Administration under subpart K of part 91 of title 14, Code of Federal Regulations, and

(B)is registered in the United States.

(2)The term “fractional ownership aircraft program” means a program under which—

(A)a single fractional ownership program manager provides fractional ownership program management services on behalf of the fractional owners,

(B)there are 1 or more fractional owners per fractional program aircraft, with at least 1 fractional program aircraft having more than 1 owner,

(C)with respect to at least 2 fractional program aircraft, none of the ownership interests in such aircraft are—

(i)less than the minimum fractional ownership interest, or

(ii)held by the program manager referred to in subparagraph (A),

(D)there exists a dry-lease aircraft exchange arrangement among all of the fractional owners, and

(E)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)(A)The term “qualified fractional owner” means any fractional owner which has a minimum fractional ownership interest in at least one fractional program aircraft.

(B)The term “minimum fractional ownership interest” means, with respect to each type of aircraft—

(i)a fractional ownership interest equal to or greater than 1/16 of at least 1 subsonic, fixed wing, or powered lift aircraft, or

(ii)a fractional ownership interest equal to or greater than 1/32 of at least 1 rotorcraft aircraft.

(C)The term “fractional ownership interest” means—

(i)the ownership of an interest in a fractional program aircraft,

(ii)the holding of a multi-year leasehold interest in a fractional program aircraft, or

(iii)the holding of a multi-year leasehold interest which is convertible into an ownership interest in a fractional program aircraft.

(D)The term “fractional owner” means any person owning any interest (including the entire interest) in a fractional program aircraft.

(4)The term “dry-lease aircraft exchange” means an agreement, documented by the written program agreements, under which the fractional program aircraft are available, on an as needed basis without crew, to each fractional owner.

(5)For purposes of subsection (a), a fractional program aircraft shall not be considered to be used for the transportation of a qualified fractional owner, or on account of such qualified fractional owner, when it is used for flight demonstration, maintenance, or crew training.

(6)A fractional program aircraft shall not be considered to be used on account of a qualified fractional owner when it is used in deadhead service and a person other than a qualified fractional owner is separately charged for such service.

(d)This section shall not apply to liquids used as a fuel in an aircraft after September 30, 2028.

Notes & Related Subsidiaries

Editorial Notes

Amendments

2024—Subsec. (d). Pub. L. 118–63 substituted “

September 30, 2028” for “

May 10, 2024”. Pub. L. 118–41 substituted “

May 10, 2024” for “

March 8, 2024”. 2023—Subsec. (d). Pub. L. 118–34 substituted “

March 8, 2024” for “

December 31, 2023”. Pub. L. 118–15 substituted “

December 31, 2023” for “

September 30, 2023”. 2018—Subsec. (d). Pub. L. 115–254 substituted “

September 30, 2023” for “

September 30, 2021”.

Statutory Notes and Related Subsidiaries

Effective Date

Pub. L. 112–95, title XI, § 1103(d)(1), Feb. 14, 2012, 126 Stat. 151, provided that: “The

Amendments

made by subsection (a) [enacting this section and amending section 4082 and 9502 of this title] shall apply to fuel used after March 31, 2012.”

§4043 Surtax on fuel used in aircraft part of a fractional ownership program

Summary

Title 26, §4043

Notes & Related Subsidiaries

Editorial Notes

Amendments

Statutory Notes and Related Subsidiaries

Effective Date

Amendments

Citations & Metadata