Share with your friends

House approves “clean” FAA authorization bill; only aviation-related tax provisions

House approves “clean” FAA authorization bill

The U.S. House of Representatives last night passed by voice vote a resolution concurring to Senate amendments to H.R. 636, the legislative vehicle for reauthorizing Federal Aviation Administration (FAA) programs, with House amendments. This resolution reflects a bipartisan, bicameral agreement on the FAA bill that was reached on July 6.


Related content

The FAA reauthorization bill would extend through September 30, 2017, 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.

The bill does not include tax provisions unrelated to aviation.

The House passed the resolution under suspension of the rules, a procedure that requires the vote of at least two-thirds of voting members to pass a bill.

What’s next?

The airport and airway trust fund taxes currently are set to expire July 15, 2016. In a joint statement describing the bipartisan, bicameral agreement with respect to the legislation, the chairmen and ranking members of the House and Senate transportation committees indicated that they “look forward to sending this measure to the president before the July 15 expiration of the FAA’s current authorization.”

KPMG observation

If H.R. 636 becomes law in its current form, it is not clear whether or not there will be another “legislative vehicle” for other tax law changes to be enacted this year. In particular, a number of tax preferences will expire in 2016, if not further extended, and technical corrections to previously enacted legislation are pending.

© 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

KPMG International Cooperative (“KPMG International”) is a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us


Want to do business with KPMG?


Request for proposal