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

Summary

A tax must be paid of 14.1 cents per gallon on liquid used as fuel in certain shared‑ownership airplanes. The tax applies to fuel used during any calendar quarter by any person when the airplane carries a qualified fractional owner or is used because of that owner, including deadhead trips. A "fractional program aircraft" is one listed in FAA management specs and registered in the United States. A "fractional ownership program" is a managed shared‑ownership plan with a single manager, multiple owners (at least one airplane with more than one owner), at least 2 airplanes with ownership interests that meet the minimum and are not owned by the manager, a dry‑lease exchange letting owners use planes without crew, and multi‑year agreements covering ownership, management, and the dry‑lease exchange. A "qualified fractional owner" has at least the minimum share, which is 1/16 for subsonic fixed‑wing or powered‑lift planes and 1/32 for rotorcraft. A fractional ownership interest can be ownership, a multi‑year lease, or a convertible multi‑year lease. Fuel used only for flight demonstrations, maintenance, or crew training is not taxed, and deadhead flights are not taxed if someone else (not a qualified fractional owner) is separately charged. The rule stops applying after September 30, 2028.