“A bill to amend the Internal Revenue Code of 1986 to increase excise taxes on fuel used by private jets, and for other purposes.”
No CRS summary available for this bill.
This section increases the excise tax rates on fuel (under IRC §§4041(c) and 4081(a)(2)) used in noncommercial aviation (i.e., private jets) to 35.9 cents per gallon plus $1.641 per gallon (from 21.8 cents per gallon), while maintaining the 4.3 cents per gallon rate for commercial aviation, effective January 1, 2026, with inflation adjustment to the $1.641 amount for calendar years after 2026. The section also establishes a temporary refund (without interest) to the ultimate purchaser of the $1.641 per gallon portion for reasonable cause uses (e.g., scientific research, natural disaster evacuation, or medical emergency assistance), as determined by the Secretary, for fuel sold or used through December 31, 2027. Finally, this section eliminates the exemption from the IRC §4261 air transportation excise tax (i.e., the 7.5% ticket tax) for noncommercial flights, retaining it only for helicopter or fixed-wing aircraft used solely for specified forestry and agricultural purposes (i.e., planting, cultivation, cutting, transportation, or care of trees) that do not use certain federally assisted airport facilities or services.
This section establishes the Funding to Support Clean Communities Trust Fund in the Treasury of the United States, effective January 1, 2026, by adding new IRC §9512 funded by transfers equivalent to excise taxes received on aviation fuel under IRC §4041(c) to the extent attributable to the rate in §4041(c)(3)(B)(ii) and on kerosene under IRC §4081 to the extent attributable to the rate in §4081(a)(2)(C)(ii)(II) (with conforming amendments to IRC §9502 diverting these amounts from the Airport and Airway Trust Fund). Amounts in the trust fund are available, as provided in appropriation acts, for grants and activities authorized under CAA §§103(a)-(c) and 105 (i.e., EPA research, investigations, demonstrations, surveys, studies, technical assistance, and grants to state and local air pollution control agencies related to air pollution prevention and control), including (1) air monitoring activities such as fenceline monitoring, screening air monitoring, national air toxics trend stations, community monitoring, expansion of the national ambient air quality monitoring network, monitor replacement/repair/maintenance, and air quality sensors in low-income and disadvantaged communities; (2) expansion, connection, replacement, repair, operation, and maintenance of public transit and passenger rail infrastructure or systems located 20 miles or less from an airport; and (3) public transportation improvements, particularly in disadvantaged communities, including safe, frequent, and reliable bus service. (Thus, at least 50% of amounts made available must be designated for disadvantaged communities—defined as those with significant low-income populations or socially disadvantaged groups (per 7 USC 2279(a)) experiencing or at risk of higher adverse health or environmental effects—with priority to communities disproportionately impacted by air pollution as determined by the Secretary in consultation with EPA.)