Would Lower Taxes On Some Payments Made To Management Companies

The tax reform bill under consideration in the U.S. Senate would reduce some taxes paid by companies that manage private jets.

The Tax Cuts and Jobs Act includes a provision that would decrease the amount of tax owed by such companies on fees collected for maintenance, storage and staffing for the aircraft.

The Hill reports that, according to the description from the Joint Committee on Taxation:

"Applicable services include support activities related to the aircraft itself, such as its storage, maintenance, and fueling, and those related to its operation, such as the hiring and training of pilots and crew, as well as administrative services such as scheduling, flight planning, weather forecasting, obtaining insurance, and establishing and complying with safety standards."

The U.S. House recently passed a different version of the tax restructuring plan. It was not reported whether the house version included the language pertaining to private jet management companies.

Reform of the tax code has been a major priority for President Donald Trump. But some Senate Republicans are already expressing concerns about the overall bill, and a major fight is expected on the floor of the Senate floor after Thanksgiving.

(Image from file)

FMI: Original Report