Buy now Jet Card offers to save the 7.5% FET in 2021 are not created equal

FAQs: Aviation Excise Tax Holiday under the CARES Act

Guidance from the IRS infers if you buy a Jet Card now, you can save the 7.5% Federal Excise Tax for flights next year, maybe

Get ready for a possible flood of email offers from private jet companies. The offer is to buy a jet card now for flights in 2021 and beyond. The goal is to save the 7.5% Federal Excise Tax for those post-New Year’s trips.

As part of the CARES Act, the collection of the tax is suspended through Dec. 31, 2020. Unless new legislation is put into place, it will snap back into effect on Jan. 1, 2021. The tax applies to domestic flights and those that begin or end within 225-miles of the Canadian and Mexican borders.

Magellan Jets offers FET-free jet cards for 2021 and beyond

Magellan Jets

Jet card broker Magellan Jets is promoting tax-free private jet flights after the CARES Act tax holiday expires at the end of 2020.

Jet card broker Magellan Jets is wading into what could be a hot topic for the rest of the year.

Can you save the 7.5% Federal Excise Tax on jet card charter flights in 2021 if you buy before the end of the year? As part of the CARES Act, the collection of the tax is suspended through Dec. 31, 2020. Unless new legislation is put into place, it will go back into effect on Jan. 1, 2021.

What happens to the Federal Excise Tax you prepaid for your Jet Card before the CARES Act?

Jet Card

The COVID-19 Coronavirus assistance legislation eliminates the 7.5% FET between March 28, 2020, and year’s end

What are the best strategies for Jet Card flying during the FET holiday

Updated April 6, 2020 @7:16pm

One point of the 880-page CARES Act is a waiver of the 7.5% Federal Excise Tax (FET). The holiday lasts between March 28 and December 31, 2020. It’s normally levied for domestic Part 135 flights, which includes domestic jet card trips. It was also applied to U.S. flights that start or end within 200 miles of the southern and northern borders.

You might naturally assume that you won’t pay FET for flights during the rest of the year. You would be wrong. It depends on your program. So, how does this impact you?

How the Covid-19 Coronavirus CARES Act impacts private jet charters and jet cards

private jet charter Covid-19 Coronavirus

The Covid-19 Coronavirus rescue package rescinds 7.5% Federal Excise Tax (FET) for on-demand charters and jet cards

On-demand and jet card charter customers won’t have to pay FET for flights through the end of 2020

Jet card and on-demand charter customers should review invoices to ensure they aren’t being charged the FET

Business aviation in the U.S. is getting some relief as part of the CARES (Coronavirus Aid, Relief, and Economic Security) Act, passed last week by both houses of Congress and signed by President Donald J. Trump.

For consumers, the most noticeable impact is that Part 135 operators (and you) don’t have to pay the 7.5% Federal Excise Tax. The levy applies for domestic flights or flights to and from the U.S. beginning or ending within 225 miles of the border with several exceptions.

Jet Card Pricing: These 19 factors will impact how much you pay to fly privately

Once you buy a jet card, flying is as easy as one call or even booking online, but figuring out jet card pricing is another matter

The number of jet card providers has more than doubled over the past decade in part because jet card memberships are an easier way to access the charter market. Via fractional jet card programs and owned fleet operators, you can get a consistent experience flying the same aircraft type in like configurations previously only available via committing to five-year share contracts or owning your own aircraft. It’s no longer one size fits all with programs that start at five hours and ranging up to 100 hours. And it’s not just fixed one-way rates, but now there are now jet cards that use dynamic pricing. There are even programs where you can get both a fixed one-way rate with guaranteed availability and dynamic pricing where with the goal of beating your fixed rate, so in other words, your fixed rate is a ceiling price – you won’t go higher and you might go lower. 

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