S.Amdt. 3757

SA 3757. Mr. BROWN submitted an amendment intended to be proposed to
amendment SA 3679 proposed by Mr. McConnell (for Mr. Thune (for himself
and Mr. Nelson)) to the bill H.R. 636, to amend the Internal Revenue
Code of 1986 to permanently extend increased expensing limitations, and
for other purposes; which was ordered to lie on the table; as follows:

At the appropriate place, insert the following:

SEC. ___. AMOUNTS PAID FOR AIRCRAFT MANAGEMENT SERVICES.

(a) In General.--Subsection (e) of section 4261 of the
Internal Revenue Code of 1986 is amended by adding at the end
the following new paragraph:
``(5) Amounts paid for aircraft management services.--
``(A) In general.--No tax shall be imposed by this section
or section 4271 on any amounts paid by an aircraft owner for
aircraft management services related to--
``(i) maintenance and support of the aircraft owner's
aircraft; or
``(ii) flights on the aircraft owner's aircraft.
``(B) Aircraft management services.--For purposes of
subparagraph (A), the term `aircraft management services'
includes assisting an aircraft owner with administrative and
support services, such as scheduling, flight planning, and
weather forecasting; obtaining insurance; maintenance,
storage and fueling of aircraft; hiring, training, and
provision of pilots and crew; establishing and complying with
safety standards; or such other services necessary to support
flights operated by an aircraft owner.
``(C) Lessee treated as aircraft owner.--
``(i) In general.--For purposes of this paragraph, the term
`aircraft owner' includes a person who leases the aircraft
other than under a disqualified lease.
``(ii) Disqualified lease.--For purposes of clause (i), the
term `disqualified lease' means a lease from a person
providing aircraft management services with respect to such
aircraft (or a related person (within the meaning of section
465(b)(3)(C)) to the person providing such services), if such
lease is for a term of 31 days or less.
``(D) Pro rata allocation.--If any amount paid to a person
represents in part an amount paid for services not described
in subparagraph (A), the tax imposed by subsection (a), if
applicable to such amount, shall be applied to such payment
on a pro rata basis.''.
(b) Effective Date.--The amendment made by this section
shall apply to amounts paid beginning after the date of the
enactment of this Act.
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