Podcast: What the New IRS FET Rule Means for Business Aviation
Jan. 25, 2021
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.”
In today’s episode of NBAA’s “Flight Plan,” host Rob Finfrock speaks with:
John Hoover, partner at Holland and Knight and chair of the NBAA Tax Committee
Scott O’Brien, NBAA senior director, government affairs
Unstabilized approaches, get-there-itis, flight-plan continuation bias and not fully understanding aircraft runway performance are reasons why runway excursions continue to be one of the most common safety challenges facing Part 91 operators. Training on how to effectively deal with such events can help reduce the threat, but having a backup plan may be most important.
Smaller Part 91 operators face the same challenges as their larger counterparts, but they do so with fewer resources. That makes it important for the aviation manager to not only set the right example, but for everyone in the department to lead from their respective positions to create a safe and professional operation.
Aircraft refurbishments continue to be in high demand, with new paint, cabin refreshes and connectivity solutions just a few of the popular upgrades available for business aircraft. Many times, it's ideal to combine this work with scheduled maintenance or overhauls, so planning ahead and scheduling refurbishment during maintenance downtime is as important as ever.
NBAA joined with five industry associations in submitting comments on the FAA's notice of proposed rulemaking on the operation of advanced air mobility vehicles in the National Airspace System. While the NPRM represents significant progress toward the start of commercial AAM operations as soon as 2025, industry stakeholders noted a few concerns.
International Business Aviation Council Ltd.