TaxNewsFlash-United States

September 18, 2007
No. 2007-408

Legislative Update: Ways and Means Approves Extension of Aviation Fuel Taxes, Increase in Corporate Estimated Tax Safe Harbor

The House Ways and Means Committee today approved a bill that would extend the airline ticket taxes through the 2011 fiscal year and raise fuel taxes on general aviation. The ticket taxes are set to expire September 30.

Fuel taxes on commercial aviation would remain unchanged. H.R. 3539, the Airport and Airways Trust Fund Financing Act of 2007, would raise $1.8 billion by increasing the general aviation jet fuel tax from 21.9 cents per gallon to 36 cents. It would raise the general aviation gasoline tax from 19.4 cents per gallon to 24.2 cents.

The bill would extend authority for expenditures from the Airport and Airways Trust Fund into which the aviation taxes are deposited. That authority also would be extended through September 30, 2011. The House this week is expected to take up a comprehensive aviation bill in which the Ways and Means measure would be included.

The Senate Finance Committee has not scheduled action to extend the taxes.

TAA Bill Would Raise Corporate Safe Harbor

Ways and Means also approved a bill, H.R. 3375, to extend trade adjustment assistance for three months. The bill would raise the estimated tax safe harbor for corporations with at least $1 billion in assets from 114.75% to 115% for payments due in July, August and September 2012.

Descriptions and revenue estimates of the Ways and Means bills are posted on the committee Web site: http://waysandmeans.house.gov/legis.asp?formmode=item&number=586

To print a copy of this TaxNewsFlash article, go to: File>Print>Preferences or Properties>Landscape.

ANY TAX ADVICE IN THIS COMMUNICATION IS NOT INTENDED OR WRITTEN BY KPMG TO BE USED, AND CANNOT BE USED, BY A CLIENT OR ANY OTHER PERSON OR ENTITY FOR THE PURPOSE OF (i) AVOIDING PENALTIES THAT MAY BE IMPOSED ON ANY TAXPAYER OR (ii) PROMOTING, MARKETING OR RECOMMENDING TO ANOTHER PARTY ANY MATTERS ADDRESSED HEREIN.

The KPMG logo and name are trademarks of KPMG International.

KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever.

The information contained in TaxNewsFlash-United States is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

Direct comments, including requests for subscriptions, to US-KPMGWNT@kpmg.com. For more information, contact KPMG’s Federal Tax Legislative and Regulatory Services Group at + 1 202.533.4366, 2001 M Street NW, Washington, DC 20036-3310.

To unsubscribe from TaxNewsFlash-United States, reply to this message and type ‘TaxNewsFlash Unsubscribe' in the subject line, then click on the SEND button.

KPMG Online Privacy Statement and Disclaimer