Local congressman introduces legislation to support innovative aircraft
– Paso Robles’ U.S. Representative Jimmy Panetta (D-Monterey) and Jay Obernolte (R-Hesperia), recently introduced the bipartisan AAM Tax Exemption Parity Act to modernize the U.S. tax code to better support innovative and emerging powered lift aircraft. The members will introduce this legislation as an amendment to H.R. 3935, the Securing Growth and Robust Leadership in American Aviation Act, which will reauthorize the Federal Aviation Administration (FAA) and aviation safety and infrastructure programs for the next five years.
Currently fixed-wing and helicopter operations are eligible for ticket and cargo tax exemptions for certain activities that range from emergency medical services to forest management. However, as written, the current tax code would exclude powered lift aircraft from these exemptions. The AAM Tax Exemption Parity Act would address this by clarifying that these innovative aircraft will have access to the same tax exemptions as other, similar aircraft.
“As Advanced Air Mobility takes flight, we need our nation’s tax code to keep pace with and support this emerging technology,” said Rep. Panetta. “By clarifying that tax exemptions available for helicopters and fixed-wing aircraft also apply to powered lift aircraft, we’ll ensure a level playing field across aviation. Taking this action will better support the growth of these innovative aircraft which have the potential to open new modes of transportation throughout our country.”
“Advanced Air Mobility has the potential to revolutionize personal transportation within our cities and our country,” said Rep. Obernolte. “Providing powered lift aircraft with the same tax treatment afforded to helicopters and fixed-wing aircraft will allow for greater innovation in the industry and provide a fair market for these remarkable new aircraft.”
In a 2022 report, the Government Accountability Office (GAO) recommended clarifying AAM aircraft tax exemptions in order to ensure tax law is more efficiently and effectively administered across aviation.
Comments
