Fractional Aircraft Surtax Exclusion for Non-Transportation Use

§ 4043. Surtax on fuel used in aircraft part of a fractional ownership program(a) In generalThere 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 taxThe rate of tax imposed by subsection (a) is 14.1 cents per gallon. (c) Definitions and special rulesFor purposes of this section—(1) Fractional program aircraftThe 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 programThe 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 ownerThe 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 interestThe 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 interestThe 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