FAA Modernization and Reform Act of 2012 (P.L. 112-95)

 

(1) PERSONS.-- Clause (ii) of section 4261(j)(1)(A) is amended by striking "February 17, 2012" and inserting "September 30, 2015".

(2) PROPERTY.-- Clause (ii) of section 4271(d)(1)(A) is amended by striking "February 17, 2012" and inserting "September 30, 2015".

 

(1) by striking "February 18, 2012" in the matter preceding subparagraph (A) and inserting "October 1, 2015", and

(2) by striking the semicolon at the end of subparagraph (A) and inserting "or the FAA Modernization and Reform Act of 2012;".

 

(1) IN GENERAL.-- Subchapter B of chapter 31 is amended by adding at the end the following new section:

 

"(1) for the transportation of a qualified fractional owner with respect to the fractional ownership aircraft program of which such aircraft is a part, or

"(2) with respect to the use of such aircraft on account of such a qualified fractional owner, including use in deadhead service.

 

"(1) FRACTIONAL PROGRAM AIRCRAFT.-- The term 'fractional program aircraft' means, with respect to any fractional ownership aircraft program, any aircraft which--

 

"(2) FRACTIONAL OWNERSHIP AIRCRAFT PROGRAM.-- The term 'fractional ownership aircraft program' means a program under which--

 

"(3) DEFINITIONS RELATED TO FRACTIONAL OWNERSHIP INTERESTS

 

"(4) DRY-LEASE AIRCRAFT EXCHANGE.-- The term 'dry-lease aircraft exchange' means an agreement, documented by the written program agreements, under which the fractional program aircraft are available, on an as needed basis without crew, to each fractional owner.

"(5) SPECIAL RULE RELATING TO USE OF FRACTIONAL PROGRAM AIRCRAFT FOR FLIGHT DEMONSTRATION, MAINTENANCE, OR TRAINING.-- For purposes of subsection (a), a fractional program aircraft shall not be considered to be used for the transportation of a qualified fractional owner, or on account of such qualified fractional owner, when it is used for flight demonstration, maintenance, or crew training.

"(6) SPECIAL RULE RELATING TO DEADHEAD SERVICE.-- A fractional program aircraft shall not be considered to be used on account of a qualified fractional owner when it is used in deadhead service and a person other than a qualified fractional owner is separately charged for such service.

 

(2) CONFORMING AMENDMENT.-- Subsection (e) of section 4082 is amended by inserting "(other than kerosene with respect to which tax is imposed under section 4043)" after "In the case of kerosene'.

(3) TRANSFER OF REVENUES TO AIRPORT AND AIRWAY TRUST FUND.-- Paragraph (1) of section 9502(b) is amended by redesignating subparagraphs (B) and (C) as subparagraphs (C) and (D), respectively, and by inserting after subparagraph (A) the following new subparagraph:

 

(4) CLERICAL AMENDMENT.-- The table of sections for subchapter B of chapter 31 is amended by adding at the end the following new item:

 

(1) SUBSECTION (a).-- The amendments made by subsection (a) shall apply to fuel used after March 31, 2012.

(2) SUBSECTION (b).-- The amendment made by subsection (b) shall apply to uses of aircraft after March 31, 2012.

(3) SUBSECTION (c).-- The amendments made by subsection (c) shall apply to taxable transportation provided after March 31, 2012.

 

(1) by redesignating subsection (c) as subsection (d),

(2) by striking "subsection (a) or (b)" in subsection (d), as so redesignated, and inserting "subsection (a), (b), or (c)", and

(3) by inserting after subsection (b) the following new subsection:

 

"(1) IN GENERAL.-- In the case of transportation by air for which disclosure on the ticket or advertising for such transportation of the amounts paid for passenger taxes is required by subsection (a)(2) or (b)(1)(B), if such amounts are separately disclosed, it shall be unlawful for the disclosure of such amounts to include any amounts not attributable to such taxes.

"(2) INCLUSION IN TRANSPORTATION COST.-- Nothing in this subsection shall prohibit the inclusion of amounts not attributable to the taxes imposed by subsection (a), (b), or (c) of section 4261 in the disclosure of the amount paid for transportation as required by subsection (a)(1) or (b)(1)(A), or in a separate disclosure of amounts not attributable to such taxes.'.

 

(1) ROLLOVER OF AIRLINE PAYMENT AMOUNT.-- If a qualified airline employee receives any airline payment amount and transfers any portion of such amount to a traditional IRA within 180 days of receipt of such amount (or, if later, within 180 days of the date of the enactment of this Act), then such amount (to the extent so transferred) shall be treated as a rollover contribution described in section 402(c) of the Internal Revenue Code of 1986. A qualified airline employee making such a transfer may exclude from gross income the amount transferred, in the taxable year in which the airline payment amount was paid to the qualified airline employee by the commercial passenger airline carrier.

(2) TRANSFER OF AMOUNTS ATTRIBUTABLE TO AIRLINE PAYMENT AMOUNT FOLLOWING ROLLOVER TO ROTH IRA.-- A qualified airline employee who has contributed an airline payment amount to a Roth IRA that is treated as a qualified rollover contribution pursuant to section 125 of the Worker, Retiree, and Employer Recovery Act of 2008, may transfer to a traditional IRA, in a trustee-to-trustee transfer, all or any part of the contribution (together with any net income allocable to such contribution), and the transfer to the traditional IRA will be deemed to have been made at the time of the rollover to the Roth IRA, if such transfer is made within 180 days of the date of the enactment of this Act. A qualified airline employee making such a transfer may exclude from gross income the airline payment amount previously rolled over to the Roth IRA, to the extent an amount attributable to the previous rollover was transferred to a traditional IRA, in the taxable year in which the airline payment amount was paid to the qualified airline employee by the commercial passenger airline carrier. No amount so transferred to a traditional IRA may be treated as a qualified rollover contribution with respect to a Roth IRA within the 5-taxable year period beginning with the taxable year in which such transfer was made.

(3) EXTENSION OF TIME TO FILE CLAIM FOR REFUND.-- A qualified airline employee who excludes an amount from gross income in a prior taxable year under paragraph (1) or (2) may reflect such exclusion in a claim for refund filed within the period of limitation under section 6511(a) of such Code (or, if later, April 15, 2013).

(4) OVERALL LIMITATION ON AMOUNTS TRANSFERRED TO TRADITIONAL IRAS.--

(5) COVERED EXECUTIVES NOT ELIGIBLE TO MAKE TRANSFERS.-- Paragraphs (1) and (2) shall not apply to any transfer by a qualified airline employee (or any transfer authorized under subsection (d) by a surviving spouse of the qualified airline employee) if at any time during the taxable year of the transfer or any preceding taxable year the qualified airline employee held a position described in subparagraph (A) or (B) of section 162(m)(3) with the commercial passenger airline carrier from whom the airline payment amount was received.

 

(1) AIRLINE PAYMENT AMOUNT.--

 

(2) QUALIFIED AIRLINE EMPLOYEE.-- The term "qualified airline employee" means an employee or former employee of a commercial passenger airline carrier who was a participant in a defined benefit plan maintained by the carrier which--

 

(3) TRADITIONAL IRA.-- The term "traditional IRA" means an individual retirement plan (as defined in section 7701(a)(37) of the Internal Revenue Code of 1986) which is not a Roth IRA.

(4) ROTH IRA.-- The term "Roth IRA" has the meaning given such term by section 408A(b) of such Code.

 

(1) by striking all that precedes "is the issue price" and inserting:

 

(2) by striking paragraph (2).