Title 26 — Internal Revenue CodeRelease 119-73
§4043 Surtax on Fuel Used in Aircraft Part of a Fractional Ownership Program
Title 26 › Subtitle Subtitle D— Miscellaneous Excise Taxes › Chapter 31— RETAIL EXCISE TAXES › Subchapter B— Special Fuels › § 4043
Summary
Fuel used in aircraft that are part of a fractional ownership program — where multiple owners share planes managed by a single program manager — is hit with a surtax of 14.1 cents per gallon. The tax applies to fuel used to fly a qualified fractional owner, or used on that owner's account, including empty repositioning flights. A qualified owner must hold at least a 1/16 interest in a fixed-wing plane or a 1/32 interest in a rotorcraft. Fuel used for flight demonstrations, maintenance, or crew training is not taxed, and empty flights billed separately to someone who is not a fractional owner don't count either. The surtax does not apply to fuel used after September 30, 2028.
Full Legal Text
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.
Legislative History
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.”
Reference
Citations & Metadata
Citation
26 U.S.C. § 4043
Title 26 — Internal Revenue Code
Last Updated
Apr 6, 2026
Release point: 119-73