President signs aviation tax, hurricane tax-relief | KPMG | GLOBAL

President signs aviation tax and hurricane tax-relief legislation

President signs aviation tax, hurricane tax-relief

President Trump today, according to a Ways and Means Committee release, signed into law H.R. 3823 that extends Federal Aviation Administration (FAA) programs and that provides disaster tax relief for taxpayers affected by recent hurricanes.

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

Aviation-related taxes

The legislation extends through March 31, 2018, taxes and tax rates that are dedicated to the airport and airway trust fund: 

  • 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-related tax relief

The legislation includes tax relief with respect to taxpayers affected by Hurricanes Harvey, Irma, and Maria. These tax-relief 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 legislation also includes other provisions relating to private flood insurance, certain public health programs, a Medicare demonstration project, and the Medicare Improvement Fund.

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