TITLE 26 - US CODE - PART III - SPECIAL PROVISIONS APPLICABLE TO TAXES ON TRANSPORTATION BY AIR

26 USC 4281 - Small aircraft on nonestablished lines

The taxes imposed by sections 4261 and 4271 shall not apply to transportation by an aircraft having a maximum certificated takeoff weight of 6,000 pounds or less, except when such aircraft is operated on an established line. For purposes of the preceding sentence, the term maximum certificated takeoff weight means the maximum such weight contained in the type certificate or airworthiness certificate. For purposes of this section, an aircraft shall not be considered as operated on an established line at any time during which such aircraft is being operated on a flight the sole purpose of which is sightseeing.

26 USC 4282 - Transportation by air for other members of affiliated group

(a) General rule
Under regulations prescribed by the Secretary, if

(1) one member of an affiliated group is the owner or lessee of an aircraft, and

(2) such aircraft is not available for hire by persons who are not members of such group,

no tax shall be imposed under section 4261 or 4271 upon any payment received by one member of the affiliated group from another member of such group for services furnished to such other member in connection with the use of such aircraft.

(b) Availability for hire
For purposes of subsection (a), the determination of whether an aircraft is available for hire by persons who are not members of an affiliated group shall be made on a flight-by-flight basis.

(c) Affiliated group
For purposes of subsection (a), the term affiliated group has the meaning assigned to such term by section 1504 (a), except that all corporations shall be treated as includible corporations (without any exclusion under section 1504 (b)).

26 USC 4283 - Repealed. Pub. L. 101508, title XI, 11213(e)(1), Nov. 5, 1990, 104 Stat. 1388436]

Section, added Pub. L. 100–223, title IV, § 405(a), Dec. 30, 1987, 101 Stat. 1533; amended Pub. L. 101–239, title VII, § 7501(a)(b)(2), Dec. 19, 1989, 103 Stat. 2361, provided for reduction in aviation-related taxes in certain cases.