What the New IRS FET Rule Means for Business Aviation

Listen in to today’s episode of NBAA’s “Flight Plan,” where host Rob Finfrock speaks with John Hoover (partner at Holland and Knight and chair of the NBAA Tax Committee) and Scott O’Brien (NBAA senior director, government affairs) about 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. The rule also prevents the improper and retroactive application of FET charges. “We worked with the IRS and the Treasury Department, then we finally went to Capitol Hill,” said Scott O’Brien, NBAA senior director for government affairs. “Congress spoke and made clear that if you are flying on your own aircraft, and have the assistance of a management company, there’s no commercial transportation tax; it’s treated just like any non-commercial Part 91 flight.”  Listen here.