§4043 Surtax on Fuel Used in Aircraft Part of a Fractional Ownership Program

Summary

Fuel used in an aircraft that is part of a fractional ownership program is taxed when it is used to carry, or used on behalf of, a qualified fractional owner, including deadhead (empty repositioning) flights. The tax rate is 14.1 cents per gallon. The tax stops applying after September 30, 2028. Key terms in one line each: Fractional program aircraft — an aircraft listed in the FAA’s program management specs and registered in the United States. Fractional ownership aircraft program — a program with a single manager, multiple owners (at least one aircraft with more than one owner), at least two aircraft meeting the minimum ownership rules and not owned by the manager, a dry-lease aircraft exchange among owners, and multi-year program agreements. Qualified fractional owner — a person who has the minimum fractional ownership interest in at least one program aircraft. Minimum fractional ownership interest — 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, a multi-year lease, or a multi-year lease that can convert to ownership. Fractional owner — anyone who owns any interest in a program aircraft. Dry-lease aircraft exchange — a written agreement that makes aircraft available without crew to owners. The aircraft is not treated as used for an owner when it is flown for flight demonstrations, maintenance, or crew training, and deadhead service is excluded if someone else is separately charged for it.