Tax relief on US private jet flights due to COVID-19
Last week the US Federal Government passed the CARES (Coronavirus Aid, Relief, and Economic Security) Act, which included tax relief measures for US business aviation customers and the industry. This includes the removal of FET (Federal Excise Tax) from private jet flight prices until the end of the year.
The levy means that domestic on-demand charter within the US, and international flights in or out of the country to destinations within 225 miles of the border, will temporarily be exempt from the 7.5% tax, which is usually added to the private jet charter price.
Despite the short term increase in enquiries we’ve been seeing over the past few weeks for repatriation and other urgent flights, the next few months are set to be very challenging for our industry as consumers travel less. So this is welcome news for customers and companies in our sector.
Both on-demand private jet charter and jet card services will benefit from the move, which will bring some benefit during what is set to be an exceptionally challenging few months ahead, for the whole aviation industry. The bill also includes other relief for US aircraft operators, in terms of loans and payroll support.
In addition to domestic flights within the US, the 225 mile zone will include flights between and USA and either Canada or Mexico.
If your PrivateFly flight falls into a category that is exempt from FET, your pricing will now reflect the exemption.