• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Microsoft AI chief gives it 18 months—for all white-collar work to be automated by AI

2

Former top Russian official admits the country is over Putin and can 'imagine a future without him' — even elites bail as Kremlin seizes their assets 

3

The Bezos family just donated $100 million to help achieve one of Mayor Zohran Mamdani’s top campaign promises

1

Microsoft AI chief gives it 18 months—for all white-collar work to be automated by AI

2

Former top Russian official admits the country is over Putin and can 'imagine a future without him' — even elites bail as Kremlin seizes their assets 

3

The Bezos family just donated $100 million to help achieve one of Mayor Zohran Mamdani’s top campaign promises
PoliticsPrivate Jets

Watch out Taylor Swift and C-suite execs, Biden’s new tax proposals aim to crack down on the corporate jet tax write off

Marco Quiroz-Gutierrez
By
Marco Quiroz-Gutierrez
Marco Quiroz-Gutierrez
Reporter
Down Arrow Button Icon
Marco Quiroz-Gutierrez
By
Marco Quiroz-Gutierrez
Marco Quiroz-Gutierrez
Reporter
Down Arrow Button Icon
March 21, 2024, 6:59 PM ET
President Joe Biden disembarks Air Force One.
President Joe Biden disembarks Air Force One.James Devaney—GC Images

President Biden’s new budget proposal is taking aim at corporate jet use, and the effects of his searing, yet improbable, tax changes could weigh heavily on celebrities and corporations as well as the private aviation industry.

Recommended Video

In his State of the Union Address earlier this month Biden said he wanted to amend the tax code to make big corporations “finally pay their share.” With his budget proposal for 2025 he’s following through when it comes to private jets, but some say his changes could do more harm than good.

While Biden’s proposed tax changes could make an immediate impact, they’re unlikely to get through  Congress in their current form, especially in an election year. Still, the President isn’t holding back. 

The Biden administration’s proposed budget calls for gradually increasing the tax on jet fuel for private planes to $1.06 per gallon from its current rate of about 22 cents by the end of the decade. It would also increase the time it takes companies to fully write off the cost of a corporate jet to seven years. Currently, writing off a private jet takes five years, the same amount of time it takes to fully deduct the costs of a company car.

Under the current tax law, companies with private jets are allowed to deduct the costs associated with a plane as long as they are used for “ordinary and necessary” business purposes, University of New Haven associate professor of accounting and taxation James Mohs told Fortune. Yet, executives often use corporate jets for personal reasons. This is where the Internal Revenue Service says things get murky. 

If an executive takes a personal trip on a company jet, the company has to carefully track their usage of the plane and the executive has to reimburse the company appropriately so that the IRS doesn’t cancel the company’s tax deduction for the plane.

Previously, the IRS said it didn’t have the resources to check if all those taking the corporate jet deduction were complying as they should. But with funds from the Inflation Reduction Act, the IRS said it would take a closer look at non-compliance.

“With expanded resources, IRS work in this area will take off. These aircraft audits will help ensure high-income groups aren’t flying under the radar with their tax responsibilities,” IRS Commissioner Danny Werfel said in a statement. 

Private jet use has become a heated topic among Americans, with celebrities and business leaders like Taylor Swift and Elon Musk being equally criticized recently for flying private. The new tax changes could help Biden capitalize on this attention and possibly secure votes from the more than half of Americans who think corporations and wealthy individuals don’t pay their fair share of taxes. 

The Department of Transportation says that commercial customers are subsidizing private jet travel with a $4.50 per-flight fee  and a 7.5% tax to support the U.S. aviation system, while private planes contribute less than 1% of the taxes to keep the system running.

Still, industry and labor groups associated with private aviation rushed to protest Biden’s proposed tax changes. The business jet industry contributes $250 billion to the U.S. GDP and employs more than 1.2 million people, according to the National Business Aviation Association, an industry group, and some of its biggest players have a lot to lose from any changes to corporate jet tax incentives.

“The Biden administration’s sweeping plan would hurt business aviation and the jobs and communities that depend on it, and make it harder for U.S. companies to compete in a global economy,” NBAA President and CEO Ed Bolen said in a statement. 

At the same time, Mohs told Fortune that Biden’s tax changes may be more about politicking than bringing in huge sums of lost tax revenue.

Companies are incentivized to follow IRS rules when it comes to executives using corporate jets for personal use, because they want to keep their tax deductions related to those assets, he added.

“I would not think other than the case of deliberate fraud they would find much,” Mohs said.

Subscribe to Fortune Gulf Brief. Every Tuesday, this new newsletter will deliver clear-eyed, authoritative intelligence on the deals, decisions, policies, and power shifts shaping one of the world’s most consequential regions, written for the people who need to act on it. Sign up here.
About the Author
Marco Quiroz-Gutierrez
By Marco Quiroz-GutierrezReporter
LinkedIn iconTwitter icon

Role: Reporter
Marco Quiroz-Gutierrez is a reporter for Fortune covering general business news.

See full bioRight Arrow Button Icon

Latest in Politics

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Politics

 Sen. Bill Cassidy, who voted to convict Trump in Jan. 6 impeachment, loses primary as president retains grip on GOP — ‘that’s what you get’
PoliticsRepublican Party
 Sen. Bill Cassidy, who voted to convict Trump in Jan. 6 impeachment, loses primary as president retains grip on GOP — ‘that’s what you get’
By Thomas Beaumont, Jack Brook, Stephen Smith and The Associated PressMay 17, 2026
3 hours ago
epstein on the right, deutsche bank logo, dollar bill butterflies, and christian sewing on the left in a collage
BankingJeffrey Epstein
‘The Butterfly Trust’: How Deutsche Bank maintained Jeffrey Epstein as a client until he was arrested
By Lily Mae LazarusMay 17, 2026
6 hours ago
U.S. allows Russia oil sales waiver to expire despite tight market
EnergyOil
U.S. allows Russia oil sales waiver to expire despite tight market
By Jennifer A. Dlouhy and BloombergMay 16, 2026
17 hours ago
U.S., Iran stall on Hormuz reopening as oil supplies tighten
PoliticsIran
U.S., Iran stall on Hormuz reopening as oil supplies tighten
By Skylar Woodhouse, Jeff Mason, Arsalan Shahla and BloombergMay 16, 2026
18 hours ago
Former top Russian official admits the country is over Putin and can ‘imagine a future without him’ — even elites bail as Kremlin seizes their assets 
PoliticsRussia
Former top Russian official admits the country is over Putin and can ‘imagine a future without him’ — even elites bail as Kremlin seizes their assets 
By Jason MaMay 16, 2026
19 hours ago
Trump’s IRS suit may end with a $1.7 billion compensation fund
PoliticsDonald Trump
Trump’s IRS suit may end with a $1.7 billion compensation fund
By Zoe Tillman, Chris Strohm, Hadriana Lowenkron and BloombergMay 16, 2026
21 hours ago

Most Popular

Microsoft AI chief gives it 18 months—for all white-collar work to be automated by AI
AI
Microsoft AI chief gives it 18 months—for all white-collar work to be automated by AI
By Jake AngeloMay 16, 2026
1 day ago
Former top Russian official admits the country is over Putin and can 'imagine a future without him' — even elites bail as Kremlin seizes their assets 
Politics
Former top Russian official admits the country is over Putin and can 'imagine a future without him' — even elites bail as Kremlin seizes their assets 
By Jason MaMay 16, 2026
19 hours ago
The Bezos family just donated $100 million to help achieve one of Mayor Zohran Mamdani’s top campaign promises
Politics
The Bezos family just donated $100 million to help achieve one of Mayor Zohran Mamdani’s top campaign promises
By Jake AngeloMay 12, 2026
5 days ago
SpaceX heads into a record-shattering IPO with the 'deepest moat that exists today' as investors vow to 'never bet against Elon'
Innovation
SpaceX heads into a record-shattering IPO with the 'deepest moat that exists today' as investors vow to 'never bet against Elon'
By Jason MaMay 16, 2026
1 day ago
Oil markets could be a month away from the moment of truth. Brace for a 'non-linear' price spike and panic buying, analysts warn
Energy
Oil markets could be a month away from the moment of truth. Brace for a 'non-linear' price spike and panic buying, analysts warn
By Jason MaMay 16, 2026
22 hours ago
‘You’re not a hero, you’re a liability’: Shark Tank’s Kevin O’Leary warns Gen Z founders to stop glorifying hustle culture
Future of Work
‘You’re not a hero, you’re a liability’: Shark Tank’s Kevin O’Leary warns Gen Z founders to stop glorifying hustle culture
By Jacqueline MunisMay 16, 2026
1 day ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.