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 by 2030 and an extension of aircraft depreciation schedules from five to seven years.
The administration justifies these changes to ensure business aircraft operators "pay their fair share" toward the federal aviation trust fund, aligning with increased FAA funding and staffing.
A coalition of aviation industry groups strongly opposes the proposals, arguing they are "draconian," lack supporting data, and would harm small and midsize businesses, job creation, and essential services (e.g., emergency response), not just wealthy executives.

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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.