U.S. House Votes Against EU Carbon Tax on Aviation

EU vows to move forward with tax program.

Capitol

Capitol

In a bipartisan vote on Monday, the U.S. House rejected the European Union’s plan to enact a carbon tax on commercial and general aviation aircraft flying over or landing in EU territory.

The bill prevents all U.S. airlines and general aviation operators from participating in the EU tax program, scheduled to take effect at the beginning of the new year, if it is unilaterally imposed. The legislation also instructs federal agencies to take action to prevent negative ramifications of the measure on U.S. flight operations in Europe.

Experts say the EU’s carbon tax program could cost the U.S. aviation industry $3.1 billion during the first eight years of implementation. Opponents of the program say the plan would tax according to type of aircraft and total flight distance, meaning the industry would also pay for time spent flying over the United States and the Atlantic.

The House bill now moves on to the Senate, where there is not yet any companion legislation. Despite the House’s move on Monday, the European Union insisted on Tuesday that it would move forward with implementation of the program.