In response to the , Congress passed the Coronavirus Aid, Relief, and Economic Security Act, or CARES Act. While the $2 trillion relief package addressing the is an expansive piece legislation to help the U.S., it has several provisions that specifically pertain to private jet travel. Here’s what you need to know about the CARES Act and what it means for private aviation.
CARES Act: What It Means For Private Jets
Federal Excise Tax Suspension for Private Jets
The newly signed CARES Act provides relief to and for the remainder of 2020. In particular, the legislation suspends the 7.5% federal excise tax (FET) on air transportation.
Effective March 27, 2020, the new measure will be in place through Dec. 31, 2020. That means, as , you’ll enjoy these cost deductions on your throughout the rest of the year. Additionally, travelers will receive these savings on that are booked in 2020. Meanwhile, guests who purchase this year will also save on the 7.5% FET during this tax holiday.
With companies across the country eager to get back to business again, the CARES Act provides an added benefit to organizations that utilize the safety of private aviation. For a limited time, companies and individuals that purchase jet time before the end of the year can fly at any time in 2020, 2021 and beyond, with the entire purchase also exempt from the normal 7.5% federal excise tax.
Beyond the FET suspension, domestic and international segment fees will be suspended, as well as the 6.25% tax on the transportation of property. The tax holiday will provide savings on fuel too, with the suspension of the 4.3 cents per gallon excise tax on kerosene for commercial aviation use.
Magellan Jets extends additional benefits to guests during this tax holiday with longer contract terms on all hours purchased before the end of year. Explore a risk-free way to invest in your future travel and get your organization back to business, efficiently and safely.