Inside Washington Continued from page 7 While we expected the ATC corporatization battle, in 2017 we unexpectedly found ourselves in a debate with a national pilot organization that suggested to the FAA that FBOs are akin to public utilities and should be regulated along similar lines. This was a moment where our members were critical to our efforts to shape the debate. Thanks to the help of member companies, FBOs and Part 135 companies alike, we developed a report on the state of the FBO industry. The report, which is available on the front page of our website, is a comprehen- sive look at the industry and the many factors that impact the pricing of FBO services. I am pleased that as 2017 progressed, more and more industry leaders turned to our report as the foundation for debate. It has also been gratifying to see the thoughtful ap- proaches that have been taken to the issue by other groups, in- cluding the Experimental Aircraft Association, which featured an excellent article on the subject in its May edition of Sport Aviation. So where do we go from here? As you will see in the article on our annual leadership conference (page 51), your associa- tion met the issue head-on with a panel that included pilots, FBOs, airports and fuelers. A dialogue started there that I hope will continue into 2018. Finally, I don’t want to leave you with the idea that all we do at NATA is try and beat back bad ideas. We take seriously our responsibility to advance a positive, member-driven in- dustry agenda. There are proposals in Congress and before the agencies across a range of issues, including taxes, addressing illegal charter, air carrier training and others that we hope to see implemented in 2018. As we reflect on 2017 and look ahead to 2018, one thing is clearer than ever. We are in it together. To advance big ideas or defeat major threats, is a job that requires all of us to be engaged. TAX UPDATE On December 22nd , President Donald Trump AIRPORT & AVIATION LAW Our experienced attorneys represent FBOs, MROs, flight schools, aircraft sellers and buyers, avionics suppliers, ground handlers, as well as Part 91, Part 121, Part 125, Part 135 and Part 145 operators on a broad range of regulatory, commercial, business, and technical matters at airports throughout the U.S. and internationally. We assist clients with acquisitions and divestitures, aircraft sales transactions, negotiations with airports, insurance defense matters, Part 13 and 16 matters, corporate and commercial matters, trademark issues, litigation (including FAA, DOT, and TSA enforcement actions), bankruptcy and creditors’ rights, and government relations. signed into law The Tax Cuts and Jobs Act (Public Law 115-97), which overhauls the na- tion’s tax code. The law includes provisions related to the tax status of aircraft management services and immediate expensing sought by NATA and its members: Aircraft Management Services—The new law clarifies that aircraft management services are not subject to the 7.5 percent commercial ticket tax. The provision, long supported by NATA, was necessitated by a 2012 IRS Chief Counsel opin- ion that left aircraft management service com- panies vulnerable to back taxes and penalties. Contact us today to arrange a consultation with our multi-state AIRPORT LAW & AVIATION SERVICES PRACTICE GROUP P: (516) 364-1095 F: (516) 364-0612 [email protected] www.mcbreenkopko.com 8 Expensing—NATA has long-supported full and immediate expensing as a cornerstone of tax reform. The new law makes immediate expensing available to both new and used equipment, par- ticularly important given the fact the legislation also repeals Like-Kind Exchanges (IRS Sec. 1031). Aviation Business Journal | 4th Quarter 2017
