The Tax Committee’s efforts are focused in the area of taxes affecting business/corporate aircraft and the impact of the Internal Revenue Service rules, Securities and Exchange Commission rules, and the Federal Aviation Regulations. The committee explores the implications of these rules and regulations, as well as the differences between IRS and FAA interpretation/definition of business aircraft and develops resources for NBAA members in each of these areas. NBAA members can forward questions, comments or suggestions to the committee chair or the NBAA staff liaison.
The Tax Committee has formed several internal working groups by subject matter expertise:
- Tools & Resources
- State Taxes
John Hoover, Holland & Knight LLP (Chair)
David Hernandez, Vedder Price PC (Vice Chair)
Ryan DeMoor, Satcom Direct, Inc. (Secretary)
Scott O’Brien, NBAA Staff Liaison
NBAA members may also review the full committee roster.
Information & Resources
NBAA Tax, Regulatory & Risk Management Conference — This two-day conference is designed to provide a basis for understanding how the appropriate tax laws apply to a particular aviation operation. It covers issues such as aircraft registration, ownership options, leasing options, application of the FARs, enforcement of the FARs and insurance.
Summary of Recent Action
- Advised NBAA staff and its members on IRS, SEC, FAA and DOT regulatory matters.
- Urged the IRS to take action on critical tax issues affecting business aircraft owners and operators, through formal written comments, oral testimony, and meetings with regulators at IRS and Treasury.
- Educated business aircraft owners, operators and their advisors by:
- Hosted the annual NBAA Tax, Regulatory & Risk Management Conference, which informed members on matters including Federal, state, local taxes; aircraft ownership structures; allocation of depreciation; SEC reporting; and regulatory and international issues.
- Developing and presenting a “Business Aviation Taxes: Planning and Impact” virtual study group series.
- Presenting Tax Seminars targeting intermediate to advanced-level tax and legal professionals who support flight departments.
- Promoting risk-management concepts, worked to raise the industry’s awareness of this topic from a financial and insurance perspective.
- Wrote, updated and published guidance to NBAA members, including:
- Personal Use of Employer Provided Aircraft Handbook
- Resource on Reimbursements for Certain Personal Flights (explaining the Nichols Interpretation)
- Revised and reformatted the popular NBAA State Aviation Tax Report, which contains tax rates, applicability, and exemptions for business aviation.
- Reported current events via NBAA Update and the NBAA website and responded to member inquiries on a variety of tax and finance topics.
- Produced educational articles for members on tax, regulatory and insurance topics.