U.S. House approves aviation tax, disaster tax-relief | KPMG | US

Legislative update: Congress approves aviation tax and hurricane tax-relief bill

U.S. Congress passes aviation tax, hurricane tax-relief

The U.S. House of Representatives today passed, by a vote of 264-155, a bill that would provide disaster tax relief and would extend Federal Aviation Administration (FAA) programs. The Senate also passed the bill on September 28, 2017, thus clearing the way for the legislation to be sent to the White House for action by the president.

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Read the statutory language of H.R. 3823 [PDF 231 KB]

Aviation-related taxes

The bill would extend through March 31, 2018, the following taxes and tax rates that are dedicated to the airport and airway trust fund: 

  • The imposition of tax at an increased rate on certain removals, entries, and sales of aviation gasoline and kerosene used in noncommercial aviation
  • The tax on amounts paid for taxable transportation of persons by air
  • The tax on amounts paid for taxable transportation of property by air
  • The exemption for aircraft in fractional ownership aircraft programs.

Hurricane tax relief

The bill includes tax relief with respect to taxpayers affected by Hurricanes Harvey, Irma, and Maria. The tax provisions include:

  • Special disaster-related rules for use of retirement funds
  • Employee retention credits for employers affected by the three recent hurricanes
  • Temporary suspension of limitations on certain charitable contributions
  • Special rules for qualified disaster-related personal casualty losses
  • Special rules relating to the earned income tax credit and child tax credit
  • Special rules for applying disaster-relief provisions to possessions of the United States

Other provisions

The bill also includes other provisions, including provisions relating to private flood insurance, certain public health programs, a Medicare demonstration project, and the Medicare Improvement Fund.

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