An airline industry lobbying group is pushing
for an increase of up to $27 million in the
airlines’ tax break for jet fuel in Michigan,
having already passed it out of committee and
onto this fall’s state Senate docket. On
Tuesday, August 12, 2014, American Airlines
asked North Carolina lawmakers to extend or
expand the state’s airline tax break on jet
fuel, which expires on January 1, 2016.
As the airlines rebound from a decade of
turbulence, lobbyists have mounted a campaign to
maintain and grow the airlines’ tax breaks,
which vary widely by state. In some states,
airlines only pay tax on fuel used during
Other states exempt airlines’ fuel from
environmental taxes or for multi-leg flights
that originate domestically and continue abroad.
Since 2012, Georgia, Minnesota and Indiana all
increased the value of tax breaks given to
airlines on jet fuel, with breaks in those three
states alone now worth nearly an estimated $100
million to the airlines. At the same time,
airfare has increased faster than the cost of
inflation even as fuel prices drop.
also highlight the gap between rising gas taxes
drivers are paying at the pump and the low, or
in some cases non-existent, fuel taxes airlines
continue to enjoy. Additionally, airlines and
airport officials have disagreed over how to
fund airport construction projects.