Coronavirus Update: On March 27, 2020, the CARES Act was signed into law and contained a provision that suspended federal excise tax (FET) on payments for commercial air transportation through Jan. 1, 2021. The suspension has not been renewed and once it expires, all payments for commercial air transportation made after the expiration will be subject to FETLearn more about the tax implications of the CARES Act.

NBAA Federal Excise Taxes Guide

Updated in November 2020 to reflect the tax rates for calendar year 2021, the NBAA Federal Excise Taxes Guide provides the latest information on how federal excise taxes (FET) apply to business aircraft activity. The guide includes details on how FET applies to commercial air transportation of passengers, including the percentage tax on domestic travel and related exceptions and exclusions, domestic segment fees, and the head tax on international transportation.

Key concepts including possession, command and control; available FET exemptions; and charter broker obligations for air transportation excise taxes are explained in the context of business aircraft operations. Rules on FET are constantly evolving and the guide includes updates on topics such as FET on fractional aircraft ownership program operations and IRS legal interpretations regarding aircraft service and pilot service agreements.

The Federal Excise Taxes Guide is a comprehensive but concise reference that provides NBAA members with summary information about the applicability of excise taxes to common business aircraft operations and scenarios.

Download the NBAA Federal Excise Taxes Guide

FET Resources

Selected IRS FET Publications