Aviation Coalition Pushes Back on Biden Fuel Tax Hike Plan

Groups sound the alarm about the government budget plan that they believe would harm U.S. aircraft-related businesses.

Friday, March 15, 2024 at 02:05 PM ET

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A coalition of aviation industry groups is pushing back on a proposal to increase the federal tax on jet fuel. [Courtesy: Meg Godlewski]

Key Takeaways:

The Biden administration proposes a fivefold increase in the federal jet fuel tax for business jet operators and a modification to aircraft depreciation schedules, aiming to have them "pay their fair share" and fund FAA improvements.
A coalition of aviation industry groups strongly opposes these proposals, calling them "draconian" and lacking sufficient supporting data.
The industry coalition argues the tax hike would negatively impact small and midsize businesses, not just large corporations, and that business jets serve crucial functions beyond executive travel, including emergency services and agriculture.

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A coalition of aviation industry groups is raising the alarm about a government proposal to increase the federal tax on jet fuel fivefold for business jet operators over the next five years.

President Joe Biden’s 2025 budget proposal would boost the current tax of 22 cents per gallon to $1.06 by 2030, raising an estimated $1.1 billion over the five years. The administration states business aircraft account for 7 percent of FAA airspace workload, but at the present time the current fuel tax only covers 1 percent of the revenue for the federal trust fund for aviation and airports.