26 U.S.C. § 4043 — Surtax on fuel used in aircraft part of a fractional ownership program

**(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.