NBAA is praising issuance of a pre-publication final rule by the U.S. Internal Revenue Service (IRS) that exempts owners who conduct flights on their own aircraft with a management company's assistance from paying the 7.5 percent federal excise tax (FET) for commercial flights.
The Tax Cuts and Jobs Act (TCJA) passed in 2017 included language specifying this exemption, but now the IRS's final rule, which is pending publication in the Federal Register, will codify it.
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Podcast: What the New IRS FET Rule Means for Business Aviation
A years-long advocacy campaign by NBAA and its partners culminated recently with a final rule from the IRS clarifying the applicability of federal excise taxes to management companies and aircraft owners. NBAA's “Flight Plan,” podcast recently covered this issue with host Rob Finfrock, John Hoover, Chair of the NBAA Tax Committee and Scott O'Brien, NBAA Senior Director of Government Affairs. Click here to access the podcast.