To amend the Internal Revenue Code of 1986 to clarify the excise tax exemptions for aerial applicators of fertilizers or other substances.

Amends the Internal Revenue Code to provide that an aerial applicator of agricultural fertilizer or other substances who is the ultimate purchaser of gasoline used on farms may qualify for an excise tax exemption for such gasoline without the necessity of a waiver by farm owners, operators, or tenants of their right to be treated as users and ultimate purchasers of such gasoline. Includes within such tax exemption gasoline used for the direct flight between the airfield and one or more farms.

Exempts fixed-wing aircraft used for forestry purposes from the passenger air transportation excise tax.

[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1387 Introduced in House (IH)]






109th CONGRESS
  1st Session
                                H. R. 1387

 To amend the Internal Revenue Code of 1986 to clarify the excise tax 
 exemptions for aerial applicators of fertilizers or other substances.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 17, 2005

 Mr. Herger (for himself, Mr. Brady of Texas, Mr. Berry, Mr. McCrery, 
and Mr. Costa) introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to clarify the excise tax 
 exemptions for aerial applicators of fertilizers or other substances.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. CLARIFICATION OF EXCISE TAX EXEMPTIONS FOR AGRICULTURAL 
              AERIAL APPLICATORS.

    (a) No Waiver by Farm Owner, Tenant, or Operator Necessary.--
Subparagraph (B) of section 6420(c)(4) of the Internal Revenue Code of 
1986 (relating to certain farming use other than by owner, etc.) is 
amended to read as follows:
                    ``(B) if the person so using the gasoline is an 
                aerial or other applicator of fertilizers or other 
                substances and is the ultimate purchaser of the 
                gasoline, then subparagraph (A) of this paragraph shall 
                not apply and the aerial or other applicator shall be 
                treated as having used such gasoline on a farm for 
                farming purposes.''.
    (b) Exemption Includes Fuel Used Between Airfield and Farm.--
Section 6420(c)(4) of the Internal Revenue Code of 1986, as amended by 
subsection (a), is amended by adding at the end the following new flush 
sentence:
 ``For purposes of this paragraph, in the case of an aerial applicator, 
gasoline shall be treated as used on a farm for farming purposes if the 
gasoline is used for the direct flight between the airfield and 1 or 
more farms.''.
    (c) Exemption From Tax on Air Transportation of Persons for 
Forestry Purposes Extended to Fixed-Wing Aircraft.--Subsection (f) of 
section 4261 of the Internal Revenue Code of 1986 (relating to tax on 
air transportation of persons) is amended to read as follows:
    ``(f) Exemption for Certain Uses.--No tax shall be imposed under 
subsection (a) or (b) on air transportation--
            ``(1) by helicopter for the purpose of transporting 
        individuals, equipment, or supplies in the exploration for, or 
        the development or removal of, hard minerals, oil, or gas, or
            ``(2) by helicopter or by fixed-wing aircraft for the 
        purpose of the planting, cultivation, cutting, or 
        transportation of, or caring for, trees (including logging 
        operations),
but only if the helicopter or fixed-wing aircraft does not take off 
from, or land at, a facility eligible for assistance under the Airport 
and Airway Development Act of 1970, or otherwise use services provided 
pursuant to section 44509 or 44913(b) or subchapter I of chapter 471 of 
title 49, United States Code, during such use. In the case of 
helicopter transportation described in paragraph (1), this subsection 
shall be applied by treating each flight segment as a distinct 
flight.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to fuel use or air transportation after the date of the enactment 
of this Act.
                                 <all>