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          2025 NBAA White Plains Regional Forum
          June 4, 2025
          White Plains, NY

          Bringing together current and future business aircraft owners, operators, manufacturers, customers, and other vital industry personnel, the 2025 NBAA White Plains Regional Forum will feature education sessions, an aircraft display and more than 100 exhibits.

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          Oct. 12-13, 2025
          Las Vegas, NV

          At the 2025 NBAA Tax, Regulatory & Risk Management Conference, attorneys, CPAs, financial advisors, CFOs and flight operations professionals review tax planning strategies in an ever-changing landscape.

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          2025 NBAA PDP Course: Leadership and Influencing Skills for Building High-Performing Teams
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          Las Vegas

          Held in conjunction with the 2025 NBAA-BACE, this two-day course teaches the fundamentals of leadership, while focusing on team building within an organization.

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          2025 NBAA PDP Course: Aviation Leadership
          Oct. 12-13, 2025
          Las Vegas

          Held in conjunction with the 2025 NBAA-BACE, this two-day course teaches the fundamentals of leadership, providing the tools to become an effective leader in the aviation department and in the company as a whole.

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          2025 NBAA Small Operator Symposium
          Oct. 13, 2025
          Las Vegas, NV

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          Oct. 13, 2025
          Las Vegas, NV

          Effective single-pilot risk management is key to safe single-pilot business aviation operations. This event will cover single-pilot accidents and data, aircraft transitions, circling approaches and mental health.

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          2025 NBAA PDP Course: Organizational Risk Management
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          2025 NBAA National Safety Forum
          Oct. 14-15, 2025
          Las Vegas, NV

          Developed by the NBAA Safety Committee, this event includes sessions covering industry developments in safety, the top risks to your flight department, actionable safety strategies and real world lessons learned.

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          2025 NBAA Aircraft Connection
          Oct. 14-15, 2025
          Henderson, NV

          Experience thrill of aviation innovation at the 2025 NBAA Aircraft Connection, which brings together an unmatched selection of the latest business aircraft.

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          2025 NBAA PDP Course: Management Fundamentals for Flight Departments Workshop
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          Held in conjunction with the 2025 NBAA-BACE, this two-day course focuses on how individuals can create organizational efficiencies and lead their flight department or organization toward success.

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          Feb. 02-4, 2026
          San Antonio, TX

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          Cleveland, OH

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          2026 NBAA Maintenance Conference
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          New Orleans, LA

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          Las Vegas, NV

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Home » Flight Department Administration » Tax Issues » Federal Taxes

Federal Taxes

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2017 Tax Cuts and Jobs Act

2017 Tax Cuts and Jobs Act

Passed into law in December 2017, the Tax Cuts and Jobs Act (TCJA) has implications for business aircraft owners and operators. In addition to lowering the corporate tax rate to 21 percent, the TCJA provides for immediate expensing of capital investments, repeals like-kind exchanges and makes a host of other changes that impact business aviation.

Federal Excise Taxes (FET)

Federal Excise Taxes (FET)

Both private and commercial business aircraft operators pay Federal excise taxes (FET) either on fuel or on the transportation of persons or property. Learn about FET applicability, current tax rates, and best practices for collecting and remitting the tax.

Depreciation

Depreciation

In-depth resources on the applicable depreciation schedules for business aircraft and issues such as the deductibility of heavy maintenance.

News

Top Experts Provide Peerless Tax Guidance at NBAA's 2025 Seminar May 8, 2025
NBAA’s 2025 Business Aviation Taxes Seminar put a successful finishing touch on a powerful spring conference season.
An 'Industry Under Attack' Readies for Targeted IRS Audits Oct. 20, 2024
Although the annual NBAA Tax, Regulatory and Risk Management Conference addresses a variety of subjects across those three areas of business aviation operations, the specter of targeted IRS audits looms large among attendees at this year's record-breaking event.
The IRS Is Targeting Business Aviation: Are You Ready? Nov/Dec 2024
The U.S. government has issued a warning that business aviation is in its crosshairs. Don’t be frightened, be prepared. Veteran tax experts share tips on how to navigate and survive those dreaded IRS audits and when to appeal.
NBAA News Hour: IRS Audits Have Begun – What Bizav Operators Need to Know Oct. 14, 2024
Experts say that while there has been a noticeable uptick in IRS audits specifically targeting business aircraft usage, owners still have time to prepare before the main thrust of the federal agency’s investigation begins.
NBAA News Hour: Experts Unpack IRS Plan to Audit Companies Using Business Aircraft Feb. 29, 2024
Industry experts with decades of combined real-world experience south to bring some perspective to the recent IRS announcement that the agency will “begin dozens of audits” of companies that use business aircraft, with a focus on tax policies related to non-business use of the aircraft, as well as other key considerations, during an NBAA News Hour webinar.
NBAA Questions Sweeping IRS Plan to Audit Business Aircraft Use Feb. 22, 2024
NBAA is questioning the Internal Revenue Service’s plan, announced this week, to “begin dozens of audits” of business aircraft use by American companies and entrepreneurs.  
NBAA Welcomes Decision from Treasury on Sustainable Aviation Fuel Tax Credit; Eager for Remaining Guidance Dec. 15, 2023
NBAA welcomed guidance from the U.S. Treasury Department on the fuel products eligible for the Sustainable Aviation Fuel Blender's Tax Credit under section 40B of the Internal Revenue Code.
Podcast: 2023 Year-End Tax Planning Nov. 13, 2023
The end of the year is often a stressful time for business aircraft operators that are grappling with tax issues, particularly if they've purchased an airplane hoping to take advantage of higher bonus depreciation rates. Aviation managers shouldn’t wait until the final weeks of the year to develop their tax strategy.
Effective Tax Tips for Small Business Aircraft Operators Sept/Oct 2023
Three experts share tips on how small businesses and owner-operators can avoid potential tax pitfalls related to their aircraft.
NBAA Has Latest Tips for Navigating the Complexities of Aircraft Depreciation April 26, 2023
Aircraft Depreciation Gray Areas: 100% Bonus Is Going Away, So Now What? will be an education session at the upcoming NBAA Business Aviation Tax Seminar taking place June 8, 2023, in Chicago, IL.
Podcast: It's Tax Time - Are You Sure You Don't Owe FET? April 10, 2023
Companies and individuals often grapple with the tax complexities involved with operating a business aircraft, with federal excise tax (FET) obligations a common area of uncertainty. Tax experts encourage operators to conduct an FET analysis any time money is moved to pay for aircraft operations.
NBAA, Coalition Urge IRS to Resolve Questions About SAF Tax Credit Programs Dec. 7, 2022
NBAA joined with a coalition of dozens of aviation stakeholders in submitting comments to the IRS on implementation of the upcoming sustainable aviation fuel blenders tax credit and clean fuel production credit.
NBAA Member Resource: Bonus Depreciation Entering Annual Phasedown in 2023 Dec. 5, 2022
With the phasedown of bonus depreciation beginning in 2023, NBAA’s Tax Committee has prepared a members-only resource to help answer questions with respect to claiming bonus depreciation during the phasedown period.
Bonus Depreciation Entering Annual Phasedown in 2023 Nov. 23, 2022
This NBAA members-only resource, developed by members of the NBAA Tax Committee, provides an overview on claiming bonus depreciation during the phasedown period that begins in 2023.
Podcast: The Importance of Year-End Tax Planning Oct. 31, 2022
Upcoming changes for the tax treatment of business aviation operations, including the phaseout of bonus depreciation, along with the end to tax reductions from the Tax Cut and Jobs Act of 2017, highlight the need for operators to reassess their tax strategies.
NBAA Tax Conference Examines Non-Business Use of Aircraft Oct. 16, 2022
Participants at the 2022 NBAA Tax, Regulatory & Risk Management Conference discussed the proper classification of each person onboard flights for business use, business entertainment use, personal entertainment use or personal non-entertainment use. These classifications are crucial to determine deductions or disallowances and applicable Standard Industry Fare Level costs.
Will Looming Tax Changes Doom the Bullish Business Aircraft Market? Oct. 16, 2022
Participants at the 2022 NBAA Tax, Regulatory & Risk Management Conference discussed factors that may dampen market enthusiasm, including the scaling back of several pro-business policies implemented under the 2018 Tax Cuts and Jobs Act and the 2020 CARES Act.
NBAA Joins Business Effort to Reverse Harmful R&D Tax Policy Change Oct. 15, 2022
NBAA has signed on to a letter urging congressional leaders to reverse a change in the tax code that will make it more difficult for businesses to deduct research and development (R&D) expenses, warning that the change “threatens jobs and innovation in America.
Operational Changes Can Have Broad Impacts Sept/Oct 2022
When acquiring a new aircraft or contemplating a change to your current aircraft’s operations, consider the tax, regulatory and risk impacts of those changes.
Latest Tax, Regulatory Changes Detailed in NBAA’s Personal Use of Business Aircraft Handbook July 27, 2022
NBAA has released a comprehensive update to its Personal Use of Business Aircraft Handbook, which provides valuable tax and regulatory compliance strategies when a company makes an aircraft available for non-business use.
Aircraft Operators Need to Comply With Both FAA and IRS Regs June 2, 2022
Tax and legal experts will share cost sharing and reimbursement options and limitations associated with aircraft operated under Parts 91 and 135 during the June 21 NBAA Business Aviation Tax Seminar in White Plains, NY.
IRS Provides Continued Flexibility on SIFL Rates Oct. 21, 2021
The IRS will continue to allow taxpayers to use alternative Standard Industry Fare Level rates for the second half of 2021, from July 1 to Dec. 31, 2021.
IRS Releases Guidance on Entertainment Disallowance for Sole Proprietors Sept. 17, 2021
In this members-only resource, NBAA Tax Committee member John Hoover explains the impact of the April 2, 2021 IRS chief counsel advice memorandum for sole proprietor structures and discusses reasonable allocation methods for mixed-purpose flights.
Alternative SIFL Rates Available Thanks to NBAA Advocacy June 21, 2021
NBAA advocacy led to the IRS announcing that alternative Standard Industry Fare Level rates for the first half of 2021 can be used by operators due to the significant COVID-19-related impacts on the standard rates.
Improving the Commuting Disallowance Rule May/June 2021
An IRS rule addresses concerns regarding disallowance of deductions for commuting.
NBAA Supports Legislation to Make Immediate Expensing Permanent April 21, 2021
NBAA applauds Sen. Pat Toomey (R-PA) and Rep. Jodey Arrington (R-19-TX) for reintroducing the Accelerate Long-Term Investment Growth Now (ALIGN) Act.
FET Final Rule a Win for Industry March/April 2021
The final rule affirms that owner trust arrangements, used to register thousands of business aircraft for regulatory compliance purposes, are covered by the FET exemption.
NBAA Resource Helps Members Navigate Tax Regulations on Meals and Entertainment April 2, 2021
NBAA members now have access to an important resource to help them interpret the impact on business aviation of IRS regulations on business meals and entertainment expenses.
NBAA Seeks Clarity on IRS Rules for Commuting Deductions Feb. 5, 2021
NBAA is seeking clarification from the IRS on final regulations implementing provisions in the Tax Cuts and Jobs Act, which eliminated employer deductions for qualified transportation fringe benefits and certain other transportation and commuting benefits.
NBAA, NATA Urge IRS to Provide Guidance on FET Collection and Liability Feb. 1, 2021
NBAA and NATA asked the IRS to continue the reform of federal excise tax regulations by addressing unclear and confusing rules covering the collection responsibilities for air charter operators and brokers.
Podcast: What the New IRS FET Rule Means for Business Aviation Jan. 25, 2021
A recently issued IRS final rule clarifies the applicability of federal excise taxes to management companies and aircraft owners and prevents the improper and retroactive application of FET charges.
NBAA News Hour: Determining the Impact of New Federal Excise Tax Rules Jan. 21, 2021
Experts from the NBAA Tax Committee noted in a recent NBAA News Hour webinar that taxpayers must carefully review FET rules to determine how they apply to specific aircraft ownership and operating structures.
NBAA’s Updated Federal Excise Taxes Guide Incorporates Changes for 2021 Jan. 5, 2021
NBAA has released an updated Federal Excise Taxes Guide to help taxpayers understand how federal excise taxes apply to this year’s business aircraft activity. It also includes topics such as FET on fractional aircraft.
Bonus Depreciation Key to Incentivizing Aircraft Transactions Dec. 8, 2020
Through bonus depreciation, also known as immediate expensing, taxpayers placing qualifying property into service, including business aircraft, can continue to deduct the full cost of their investment in new and used property in the first year of operation.
Entire NBAA GO Virtual Aviation Tax & Transactions Review Now Available Oct. 28, 2020
The final live session of the NBAA GO Virtual Aviation Tax & Transactions Review took place Oct. 27, 2020, and focused on the CARES Act. All six sessions are now online.
NBAA Begins Virtual Aviation Tax Review with Deprecation Session Oct. 14, 2020
NBAA’s Virtual Aviation Tax & Transactions Review launched Oct. 13, 2020, with an informative live session on the complex issues surrounding tax depreciation and deductions for business aircraft.
NBAA, NATA Seek Clarity on Excise Tax Exemption in Detailed Comments to IRS Sept. 29, 2020
NBAA joined with the National Air Transportation Association (NATA) in submitting detailed comments on a notice of proposed rulemaking regarding a legislative exemption from federal excise taxes on aircraft management services paid for by aircraft owners.
NBAA GO Sessions to Offer Best Practices for Aviation Tax & Transactions Sept. 28, 2020
NBAA announced an informative series of upcoming NBAA GO virtual professional development seminars addressing common questions and concerns surrounding aircraft transactions, ownership structures and taxation.
Reduced Business Travel Due to COVID-19 May Result in Depreciation Recapture Sept. 15, 2020
As a direct result of COVID-19, business closures and travel restrictions, aircraft purchased in 2020 could be ineligible for bonus depreciation, and depreciation recapture could be triggered on aircraft purchased in prior years.
NBAA Seeks to Preserve Commuting Deductions in Comments to IRS Aug. 26, 2020
NBAA has asked that the Internal Revenue Service employ a more equitable approach to avoid double taxation and retain critical deductions for business travel.
NBAA Welcomes Proposed IRS Rules on Excise Taxes for Aircraft Management Companies July 30, 2020
The IRS is publishing a notice of proposed rulemaking to provide regulations in response to a legislative exemption from excise taxes on aircraft management services paid by aircraft owners.
How the CARES Act Federal Excise Tax Suspension Applies to Business Aviation May 18, 2020
On a May 15, 2020, NBAA News Hour webinar, industry experts discussed the suspension of FET – and how it applies – in detail.
IRS Issues FAQ on Federal Excise Tax Suspension Reporting Issues May 14, 2020
The FAQs provide interim guidance on tax reporting issues raised by NBAA regarding the tax holiday on air transportation excise tax and fuel tax under § 4007 of the CARES Act.
What Are the Top Federal Excise Tax Exemption Filing Concerns? May 11, 2020
As part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, there is a tax holiday from March 28, 2020, through Dec. 31, 2020, for FET on amounts paid during the tax holiday, and fuel tax on fuel used during the tax holiday.
NBAA Files Comments on Proposed IRS Regulations for Business Meals and Entertainment April 16, 2020
NBAA on April 13, 2020, submitted comments to the IRS concerning a recent notice of proposed rulemaking outlining the tax treatment of business meals and entertainment activities.
CARES Act Includes Tax Provisions Affecting Business Aircraft Operators April 2, 2020
The Coronavirus Aid, Relief, and Economic Security (CARES) Act includes numerous relief tax provisions that may benefit companies operating business aircraft.
Federal Excise Taxes Suspended for Many Business Aviation Operators March 31, 2020
NBAA played a key role in securing federal excise tax relief provisions included in the March 2020 Coronavirus Aid, Relief and Economic Security Act (CARES Act), including those affecting Part 135 operators.
U.S. Senate Bill Would Make Immediate Expensing Permanent Feb. 27, 2020
A bill introduced in the U.S. Senate could make a tax depreciation rule that has stimulated the sale of new and used business aircraft a permanent part of the tax code.
Who Should Collect Federal Excise Taxes? Sept. 4, 2019
IRS audits of Part 135 charter operators highlight the importance of developing and implementing best practices for collecting and remitting federal excise tax on brokered charter flights.
Podcast: NBAA Offers Guidance on Tax Reform Provisions Feb. 25, 2019
John Hoover explains some of the tax changes affecting business aviation due to the Tax Cuts and Jobs Act.
Business Meals Remain Deductible Under IRS Notice; NBAA Provides Comments Nov. 9, 2018
On Oct. 3, 2018, the IRS issued a notice that implicitly concludes that business meals are generally non-entertainment expenses and can be deductible if certain requirements are met.
NBAA Requests Clarification on Bonus Depreciation Proposed Regulations Oct. 12, 2018
NBAA submitted comments to the IRS on the definition of a written binding contract in proposed regulations relating to immediate expensing.
IRS Issues Proposed Regulations on Bonus Depreciation Aug. 16, 2018
A notice of proposed rulemaking from the IRS on the extension and modification of 100 percent bonus depreciation includes key recommendations from NBAA’s formal request for guidance.
Recent SEC Settlement on Perquisite Disclosure is Reminder for Public Companies Using Business Aircraft July 18, 2018
Public companies that operate business aircraft should review their executives perquisite disclosure policies and procedures on a regular basis to ensure they meet SEC requirements.
NBAA Urges Members to Conduct Careful Tax-Reform Planning June 28, 2018
After NBAA's June 13, 2018, letter, the association is encouraging members to familiarize themselves with changes that will impact their businesses as they plan for next tax season.
Tax Reform Highlights for Business Aviation Dec. 19, 2017
The House and Senate have both voted to pass major tax reform legislation, and are expected to send the Tax Cuts and Jobs Act (“Tax Bill”) to the president for his signature before Dec. 25, 2017. The legislation contains important changes for business aviation in several areas, including bonus depreciation, like-kind exchanges and more.
NBAA Members Urged to Contact Congress on Aviation-Related Tax Reform Issues Dec. 7, 2017
The tax reform bills include issues impacting business aviation such as immediate expensing, like-kind exchanges and taxes applicable to aircraft management companies.
Prepare Your Flight Department Now For Tax Filing Nov. 6, 2017
Be prepared for filing taxes - now is the time for flight departments to work on their tax liability. There are new tax provisions if your aircraft was damaged by Hurricanes Harvey or Irma and out-of-pocket expenses may be deductible. Listen to the NBAA Flight Plan Podcast to learn more.
When Are IRS Commercial Transportation Taxes Due for Part 91 Flights? April 6, 2017
Many business aircraft operators make use of the limited options for cost reimbursement provided by the FAA under Part 91, Subpart F of the Federal Aviation Regulations (FARs). These options include timesharing, interchange or joint ownership agreements, affiliated group operations and demonstration flights.
NBAA Legal Brief Asserts Need for IRS Consistency, Clarity on Federal Excise Tax Sept. 23, 2016
NBAA filed an amicus brief in the Fifth Circuit Court of Appeals supporting Bombardier Aerospace, the prior owner of FlexJet, in a challenge to retroactive assessments of federal excise tax on fractional aircraft management fees.
Clarifying Federal Excise Tax Regulations Aug. 26, 2016
To find out what NBAA is doing to help business aircraft operators understand the complex IRS regulations covering federal excise taxes on air transportation of passengers, read the July/August 2016 edition of NBAA's Business Aviation Insider magazine.
Tax Court Decision Provides Insights into Hobby Loss Rules Aug. 5, 2016
A tax court case involving a physician who said the use of an airplane was to further his medical practice, and attempted to claim tax deductions, highlights a potential tax trap.
IRS Priority Guidance Plan May 20, 2016
The IRS issues a Priority Guidance Plan to identify federal tax issues that should be addressed through regulations, revenue rulings and other published guidance
Tax Case Highlights Risks of Bad Recordkeeping, Hobby Loss May 11, 2016
To deduct aircraft expenses from taxable income, business owners must be able to show that the aircraft was used in a bona fide trade or business and not as a casual investment.
IRS Memorandum Has Implications for Like-Kind Exchanges, Federal Tax Planning Jan. 6, 2016
The IRS has released a memorandum that provides information to business aircraft owners considering like-kind exchanges or using special purpose entities to own and lease aircraft.
NBAA's Business Aviation Taxes Seminar Sets Attendance Record May 14, 2015
NBAA's 2015 Business Aviation Taxes Seminar (BATS), held May 8 in Dallas, TX, attracted a record number of attendees interested in learning about emerging issues in federal and state tax regulations, and how to handle them.
“Registered Ultimate Vendor” April 6, 2009
Beginning October 1, 2005, federal excise tax imposed on removal of kerosene from the terminal rack will be $0.244 per gallon. Initially, this tax will be credited to the Highway Trust Fund; the amount eligible to be transferred into the Airport and Airway Trust Fund is based on the gallons that are used in aviation.
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