Tiberi Measure To Create Stability

Rep. Patrick Tiberi, R-Ohio (12th CD), issued the following news release:

U.S. Congressman Pat Tiberi (R-OH) today announced the inclusion of measure to create stability for fractional ownership aviation companies, like NetJets in Central Ohio, in the Federal Aviation Administration (FAA) Reauthorization Conference Report.

"Passing a reauthorization of this important legislation is long overdue," said Congressman Tiberi, a member of the Conference Committee. "This bill will streamline services, improve safety for customers and allow for growth, expansion, and hiring. Furthermore, the measure I worked to include in the bill would create certainty in the tax code and remove barriers to competition for fractional ownership aviation companies, like NetJets in Central Ohio."

Fractional ownership companies allow owners to have partial ownership and use of an airplane when they need it, without incurring the entire cost of owning a whole aircraft. Thousands of Americans are working in the fractional ownership industry, building and maintaining planes, flying aircraft, and administering the business. Congressman Tiberi's measure would help fractional ownership companies, including NetJets and Flight Options in Cleveland, grow by creating certainty in the tax code and removing barriers to competition. Currently, the FAA recognizes fractional ownership planes as private planes while the IRS taxes them as if they were commercial airplanes. Congressman Tiberi moved to streamline the treatment of fractional ownership aviation with a new IRS designation in the FAA Reauthorization. The new designation requires fractional ownership planes to pay the fuel tax used in non-commercial aviation plus a fractional surtax, creating certainty for fractional ownership businesses. This measure standardizes how fractional ownership companies are treated by the IRS and the FAA, removing barriers to competition in foreign markets.

The last multi-year FAA Reauthorization bill expired at the end of fiscal year 2007 and has been temporarily extended 23 times. The current extension expires on February 23, 2012. The House version of the bill passed in April of 2011 by a vote of 223-196. The Senate passed their version by unanimous consent in April of 2011, as well. This reauthorization would expire in 2015.

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