Page:United States Statutes at Large Volume 101 Part 3.djvu/235

 PUBLIC LAW 100-223—DEC. 30, 1987

101 STAT. 1533

SEC. 404. EXEMPTION FOR CERTAIN EMERGENCY MEDICAL TRANSPORTATION BY HELICOPTER

(a) IN GENERAL.—Section 4261 of the Internal Revenue Code of 1986 (relating to imposition of tax on transportation by air) is 26 USC 4261. amended by redesignating subsection (f) as subsection (g) and by inserting after subsection (e) the following new subsection: "(f) EXEMPTION FOR CERTAIN EMERGENCY MEDICAL TRANSPOR-

TATION.—No tax shall be imposed under this section or section 4271 on any air transportation by helicopter for the purpose of providing emergency medical services if such helicopter— "(1) does not take off from, or land at, a facility eligible for assistance under the Airport and Airway Development Act of 1970 during such transportation, and "(2) does not otherwise use services provided pursuant to the Airport and Airway Improvement Act of 1982 during such transportation." (b) TAX FREE SALES.—Subsection (1) of section 4041 of such Code (relating to exemption for certain helicopter uses) is amended to read as follows: "(1) EXEMPTION FOR CERTAIN HEUCOPTER USES.—No tax shall be imposed under this section on any liquid sold for use in, or used in, a helicopter for purposes of providing transportation with respect to which the requirements of subsection (e) or (f) of section 4261 are met." (c) TECHNICAL AMENDMENT.—Subsection (e) of section 4261 of such Code is amended by striking out "System Improvement Act" and inserting in lieu thereof "Improvement Act". (d) EFFECTIVE DATES.— (1) SUBSECTION (a).—The amendment made by subsection (a)

shall 1988, (2) shall

26 USC 4261 apply to transportation beginning after September 30, "ote. but shall not apply to amounts paid on or before such date. SUBSECTION (b).—The amendment made by subsection (b) 26 USC 4041 take effect on October 1, 1988. note.

SEC. 405. REDUCTION IN AVIATION-RELATED TAXES WHERE APPROPRIATIONS ARE SIGNIFICANTLY BELOW AUTHORIZATIONS.

(a) IN GENERAL.—Part III of subchapter C of chapter 33 of the Internal Revenue Code of 1986 (relating to facilities and services) is amended by adding at the end the following new section: "SEC. 4283. REDUCTION IN AVIATION-RELATED TAXES IN CERTAIN CASES.

"(a) REDUCTION IN RATES.—If the funding percentage is less than 85 percent, with respect to any taxable event occurring during 1990— "(1) subsections (a) and (b) of section 4261 (relating to tax on transportation of persons by air) shall each be applied by substituting '4 percent' for *8 percent', "(2) subsection (a) of section 4271 (relating to tax on transportation of property by air) shall be applied by substituting '2.5 percent' for '5 percent', "(3) paragraph (1) of section 4041(c) (relating to tax on certain fuels used in noncommercial aviation) shall be applied by substituting *7 cents' for '14 cents', and "(4) paragraph (2) of section 4041(c) (relating to tax on gasoline used in noncommercial aviation) shall not apply. "(b) FUNDING PERCENTAGE.—

26 USC 4283.

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