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April 6, 2020 — Volume 19, Issue 14 |
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| This Week's Top Stories |
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On Saturday, the FAA released a CARES Act Airport Grants – Frequently Asked Questions document related to the $10 billion in grants for airports under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). The document addresses several issues, such as how the bill benefits airports, who is eligible to receive funding, where the funding is coming from, how the funding will be allocated to airport sponsors, and how sponsors can use CARES grant funds.
The FAA also issued an updated informational document for airport sponsors considering COVID-19 related restrictions or accommodations. The update includes additional guidance in the sections titled “Rent abatement/minimum annual guarantee” and “Deferral of rental payments or other fees.” The Agency states, “A decision to abate rent (including ‘minimum annual guarantees’ and also encompassing fees) is a local decision. Rent abatement should be tied to the changed circumstances caused by the public health emergency, and done in accordance with Grant Assurances 22 and 24, as well as related statutes.” The FAA also claims that deferral of rental payments and/or fees is not likely to violate FAA’s grant assurances, if justified. NATA appreciates the agency providing further guidance and clarification on such important topics during these unprecedented times.
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Information on Commercial Excise Tax Relief
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NATA has created a document with general information as an aid to FBOs and Part 135 carriers
to help them understand the applicable aspects of this tax relief.
The CARES Act included tax relief provisions for commercial operations. The Act suspends the federal excise tax (FET) on commercial use of aviation fuel and the FET assessed on the transportation of passengers and cargo. The excise tax relief, contained in Section 4007 of the Act, is from March 28, 2020 through the end of this year.
While the Act is clear on the relief provided, given the nature of the fuel supply chain for general aviation and the various booking/payment processes for air transportation providers, some additional guidance from the IRS is expected but not yet available. Until final direction from IRS is available individuals should engage their own tax professionals and fuel suppliers for specific questions.
Please read the document in full for more information.
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State of California Issues New Reporting Requirement for Jet Fuel Sales
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The State of
California has taken steps to come into compliance with the FAA’s Aviation Fuel
Tax Policy by tracking the amount of jet fuel sales tax collected at each
California airport. According to FAA policy, state or local taxes on aviation
fuel are considered airport revenue and subject to the revenue-use requirement.
The California Department of Tax and Fee Administration (CDTFA) released a special notice
requiring retailers of jet fuel at airports to begin tracking and reporting the
sales of jet fuel by airport location. The requirement is retroactive to
January 1, 2020, and retailers will report sales on a new form, CDTFA-531-JF, Aircraft Jet Fuel Retailers
-Sales by Airport Location. The CDTFA states, “[w]hen filing your customary fuel retailer’s return
online, you will be prompted to complete this form automatically. You will
report the amounts of jet fuel sold by airport location, including total
taxable jet fuel sales and the amount of tax collected…You will continue to
report your transactions as you currently do and also report them on the new
form for jet fuel sales.”
NATA staff has met with the FAA over the past year to ensure that aviation jet fuel tax is properly accounted for and used only for aviation-related purposes. The Association applauds the California for implementing this new rule and thanks its members in California for being extremely helpful in spotting and tracking the State’s progress on this issue. Please contact NATA’s Megan Eisenstein (meisenstein@nata.aero) with any questions or concerns on other states’ compliance with the policy. To access action plans and state listings, visit the FAA’s Aviation Fuel Tax webpage.
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Dire Times for Private Jets Bring Out The Industry's Best
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NATA is pleased to be mentioned alongside several of our members in an article by Doug Gollan in Forbes, "Dire Times for Private Jets Brings Out the Industry's Best," highlighting the many efforts of the business aviation industry in the face of the coronavirus. NATA is proud to see so many of our members and the entire business aviation industry stepping up to support those in need.
NetJets has partnered with Goldman Sachs and Mount Sinai Health System to transport critical medical supplies from China to New York City.
Kenny Dichter, the Founder and CEO of Wheels Up, said after seeing the quarterback of the Seattle Seahawks and J.J. Watt of the Houston Texans (both ambassadors for the private aviation membership company) make major donations to Feeding America's COVID-19 Relief Fund, he was inspired to launch a drive to sponsor 10 million meals, tagging the initiative, Meals Up. He noted that his King Air 350s are now transporting emergency supplies to hospitals across the State of New York.
For the full article, please click here.
NATA is committed to supporting the business aviation industry through these trying times. For more information about resources that may be available to you, please visit NATA's Coronavirus Resource Page.
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| From the Agencies: |
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Industry Associations Request Exemptions from FAA to Keep Flying
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In an April 1 letter
to FAA Associate Administrator for Aviation Safety Ali Bahrami, NATA and other
general aviation associations requested exemptions and other accommodations to
ensure continuity of operations and commerce during the COVID-19 pandemic.
The letter notes other aviation authorities have provided similar exemptions for commercial and noncommercial operations, and also highlights the important role general aviation plays in the U.S. and global economy and the significant public benefit provided by the industry. For example, general aviation contributes 1.1 million jobs and $247 billion in economic activity to the U.S. economy and is a lifeline to many communities, connecting more than 5,000 public airports, compared to the 500 used by scheduled airlines.
The Air Medical Operators Association, Aircraft Owners and Pilots Association, Experimental Aircraft Association, General Aviation Manufacturers Association, Helicopter Association International, National Agricultural Aviation Association, and National Business Aviation Association also signed the April 1 letter to Mr. Bahrami.
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Department of Labor - Families First Coronavirus Response Act Notice
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According to
the United States Department of Labor (DOL), employers with fewer than 500
total employees must post the Paid Sick Leave and Expanded Family and Medical
Leave Under FFCRA notice in a conspicuous location in the
workplace and share it with any worksite employees who are working from home by
the April 1 deadline. The notice may be distributed to remote workers via
email, U.S. mail, or by posting it on an internal or external website. Read
more here.
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Register Today for NATA’s “Implementing FAA Pilot Exemption (18510) for Part 135 Operations” Webinar | April 10 | 11:00 a.m. Eastern
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As part of the
FAA exemption process for Part 135 pilots operating during the COVID-19
pandemic, the certificate holder must provide its FAA Principal Operations
Inspector (POI) with a Safety Risk Assessment/Safety Analysis and explanation
of “alternative methods.”
This webinar explores strategies for performing and documenting the required
Safety Risk Assessment/Safety Analysis and corresponding mitigation strategies
for use of the 18510 exemption. Register
here. The recording from last week’s “Operating in Today’s Part 135 Regulatory Environment” is now available. If you have ideas for future webinar topics or would like to speak to NATA about hosting a webinar for your State or Regional group, please email Ryan Waguespack at ryanw@nata.aero.
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NATACS Anti-Drug and Alcohol Misuse Prevention Program Management
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NATA
Compliance Services (NATACS) can help manage your Anti-Drug and Alcohol
Misuse Prevention Program. They are dedicated to helping clients develop
programs that provide accurate, fast and reliable solutions for a safe and
compliant drug-free workplace. Acting as your Third-Party Administrator (TPA),
NATACS is your One Stop Solution for your drug and alcohol
program needs including company policy templates, program set-up, assistance
with regulations, and administration.
If you are interested in learning more about NATACs’ Anti-Drug and Alcohol Misuse Prevention Program Management Services, they offer a free Drug Program Manager webinar. To register for the next webinar, click here!
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| Events: |
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Deadline Extended to Submit Your Nominations for the Industry Excellence and AMT Awards
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Tuesday,
August 4 is the new deadline to submit your nominations for the 2019 Industry Excellence Awards and
the 2020 Aviation
Maintenance Technician Employer Award Program. Each year, NATA presents
awards to the exceptional individuals and companies that have helped to improve
the general aviation community. The recipients of these awards are chosen based
upon NATA member-submitted nominations. NATA will share information on the
presentation of these awards at a later date. For descriptions of each award,
please click here.
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April NATA Events and June Conference Postponed
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In
light of the current situation regarding COVID-19, NATA has decided to postpone
the Certified QC Inspector Workshop scheduled for April 7 and 8,
in Chesterfield, MO, and the FBO Success Seminar scheduled for April 15 and 16 in New Orleans, LA.
NATA has also decided to postpone the Air Charter Summit and Aviation Business Conference scheduled for June 16-18 at the Renaissance Arlington in the DC Metropolitan area.
The health, safety, and well-being of all our event attendees, staff, and speakers are of the utmost importance. We will continue to monitor the situation and share new dates once they’ve been identified. Thank you for your interest and understanding. Please contact NATA at events@nata.aero with questions or comments.
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