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Internal Revenue Code · 26 U.S.C.

§ 4043. Surtax on fuel used in aircraft part of a fractional ownership program

In force Text current through Public Law 119-121 (October 9, 2026) release point 119-121

Official text, no changes From the Office of the Law Revision Counsel, release point 119-121 (current through Public Law 119-121 (October 9, 2026)). Compare it with the official text at uscode.house.gov (external site).

Cite as 26 U.S.C. § 4043

At a glance

Read from the text, the source credit and the official notes. Not part of the law.

Status
In force
Added
February 14, 2012 by Pub. L. 112–95
Last amended
May 16, 2024 by Pub. L. 118–63
Amendments
5 dated changes in the source credit
Length
4 subsections · 714 words · about 3 min to read
Defines
7 terms
Cross-references
cites 0; cited by 4 Code sections and 1 other regulation
(a) In general There is hereby imposed a tax on any liquid used (during any calendar quarter by any person) in a fractional program aircraft as fuel—
(1) for the transportation of a qualified fractional owner with respect to the fractional ownership aircraft program of which such aircraft is a part, or
(2) with respect to the use of such aircraft on account of such a qualified fractional owner, including use in deadhead service.
(b) Amount of tax

The rate of tax imposed by subsection (a) is 14.1 cents per gallon.

(c) Definitions and special rules For purposes of this section—
(1) Fractional program aircraft The term “fractional program aircraft” means, with respect to any fractional ownership aircraft program, any aircraft which—
(A) is listed as a fractional program aircraft in the management specifications issued to the manager of such program by the Federal Aviation Administration under subpart K of part 91 of title 14, Code of Federal Regulations, and
(B) is registered in the United States.
(2) Fractional ownership aircraft program The term “fractional ownership aircraft program” means a program under which—
(A) a single fractional ownership program manager provides fractional ownership program management services on behalf of the fractional owners,
(B) there are 1 or more fractional owners per fractional program aircraft, with at least 1 fractional program aircraft having more than 1 owner,
(C) with respect to at least 2 fractional program aircraft, none of the ownership interests in such aircraft are—
(i) less than the minimum fractional ownership interest, or
(ii) held by the program manager referred to in subparagraph (A),
(D) there exists a dry-lease aircraft exchange arrangement among all of the fractional owners, and
(E) there are multi-year program agreements covering the fractional ownership, fractional ownership program management services, and dry-lease aircraft exchange aspects of the program.
(3) Definitions related to fractional ownership interests
(A) Qualified fractional owner

The term “qualified fractional owner” means any fractional owner which has a minimum fractional ownership interest in at least one fractional program aircraft.

(B) Minimum fractional ownership interest The term “minimum fractional ownership interest” means, with respect to each type of aircraft—
(i) a fractional ownership interest equal to or greater than 1/16 of at least 1 subsonic, fixed wing, or powered lift aircraft, or
(ii) a fractional ownership interest equal to or greater than 1/32 of at least 1 rotorcraft aircraft.
(C) Fractional ownership interest The term “fractional ownership interest” means—
(i) the ownership of an interest in a fractional program aircraft,
(ii) the holding of a multi-year leasehold interest in a fractional program aircraft, or
(iii) the holding of a multi-year leasehold interest which is convertible into an ownership interest in a fractional program aircraft.
(D) Fractional owner

The term “fractional owner” means any person owning any interest (including the entire interest) in a fractional program aircraft.

(4) Dry-lease aircraft exchange

The term “dry-lease aircraft exchange” means an agreement, documented by the written program agreements, under which the fractional program aircraft are available, on an as needed basis without crew, to each fractional owner.

(5) Special rule relating to use of fractional program aircraft for flight demonstration, maintenance, or training

For purposes of subsection (a), a fractional program aircraft shall not be considered to be used for the transportation of a qualified fractional owner, or on account of such qualified fractional owner, when it is used for flight demonstration, maintenance, or crew training.

(6) Special rule relating to deadhead service

A fractional program aircraft shall not be considered to be used on account of a qualified fractional owner when it is used in deadhead service and a person other than a qualified fractional owner is separately charged for such service.

(d) Termination

This section shall not apply to liquids used as a fuel in an aircraft after September 30, 2028.

(Added Pub. L. 112–95, title XI, § 1103(a)(1), Feb. 14, 2012, 126 Stat. 149; amended Pub. L. 115–254, div. B, title VIII, § 802(c)(1), Oct. 5, 2018, 132 Stat. 3429; Pub. L. 118–15, div. B, title II, § 2212(c)(1), Sept. 30, 2023, 137 Stat. 85; Pub. L. 118–34, title II, § 202(c)(1), Dec. 26, 2023, 137 Stat. 1115; Pub. L. 118–41, title II, § 202(c)(1), Mar. 8, 2024, 138 Stat. 24; Pub. L. 118–63, title XIII, § 1302(c)(1), May 16, 2024, 138 Stat. 1433.)

Terms defined here

Where the text says “the term … means”. Select a term to jump to its definition.

Cross-references

Computed from the citations in the text of Title 26 and 26 CFR.

Cited by 4 Code sections

Cited in 1 regulation not issued under it

Amendment history

From the source credit and the official notes, newest first.

  1. Amended by Pub. L. 118–63Parts changed in 2024: (d)
  2. Amended by Pub. L. 118–41
  3. Amended by Pub. L. 118–34Parts changed in 2023: (d)
  4. Amended by Pub. L. 118–15
  5. Amended by Pub. L. 115–254Parts changed in 2018: (d)
  6. Added by Pub. L. 112–95

Where it sits in the Code

  1. Subtitle D Miscellaneous Excise Taxes
  2. Chapter 31 RETAIL EXCISE TAXES
  3. Subchapter B Special Fuels

Nearby sections

Official notes

Show the Law Revision Counsel's notes (amendments, effective dates)

Editorial Notes

Amendments

2024—Subsec. (d). Pub. L. 118–63 substituted “September 30, 2028” for “May 10, 2024”.

Pub. L. 118–41 substituted “May 10, 2024” for “March 8, 2024”.

2023—Subsec. (d). Pub. L. 118–34 substituted “March 8, 2024” for “December 31, 2023”.

Pub. L. 118–15 substituted “December 31, 2023” for “September 30, 2023”.

2018—Subsec. (d). Pub. L. 115–254 substituted “September 30, 2023” for “September 30, 2021”.

Statutory Notes and Related Subsidiaries

Effective Date

Pub. L. 112–95, title XI, § 1103(d)(1), Feb. 14, 2012, 126 Stat. 151, provided that: “The amendments made by subsection (a) [enacting this section and amending sections 4082 and 9502 of this title] shall apply to fuel used after March 31, 2012.”