October 7, 2023
Exec1 Aviation is taking a different approach to the Federal Excise Tax holiday from the CARES Act.
The tax is suspended through the end of the year. While the taxable event is when you buy, not when you fly, how it applies to jet card deposits is splitting providers into two camps.
With no official guidance from the Internal Revenue Service, some companies are saying they will again collect the tax for flights booked after Jan. 1, 2001. Others are saying that your deposit made before year’s end will provide FET-free flights for the duration of your card or the funds.
The Iowa-based light jet operator is simply saying your contracted rate won’t increase per its standard terms. In other words, if it deems that the tax is due, you won’t pay. It will not add the tax but pay the IRS out of your fixed rate.
You can find our report on the unofficial IRS guidance here, and an updated list of those jet card sellers offering tax-free flights in 2021 and beyond here.
