STATE TAXATION OF AIR CARRIER EMPLOYEES.

SEC. 208. STATE TAXATION OF AIR CARRIER EMPLOYEES. Section 40116(f) is amended by adding at the end the following: “(3) Compensation paid by an air carrier to an employee described in subsection (a) in connection with such employee’s authorized leave or other authorized absence from regular duties on the carrier’s aircraft in order to perform services on behalf of the employee’s airline union shall be subject to the income tax laws of only the following: 108 STAT. 1589 “(A) The State or political subdivision of the State that is the residence of the employee. “(B) The State or political subdivision of the State in which the employee’s scheduled flight time would have been more than 50 percent of the employee’s total scheduled flight time for the calendar year had the employee been engaged full time in the performance of regularly assigned duties on the carrier’s aircraft.”.