EXEMPTION FOR CERTAIN EMERGENCY MEDICAL TRANSPORTATION BY HELICOPTER.

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 amended by redesignating subsection (f) as subsection (g) and by inserting after subsection (e) the following new subsection: “(f) Exemption for Certain Emergency Medical Transportation.— 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 Helicopter 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 apply to transportation beginning after September 30, 1988, but shall not apply to amounts paid on or before such date. (2) Subsection (b).— The amendment made by subsection (b) shall take effect on October 1, 1988.