SKYDIVING FLIGHTS EXEMPT FROM TAX ON TRANSPORTATION OF PERSONS BY AIR.

SEC. 1435. SKYDIVING FLIGHTS EXEMPT FROM TAX ON TRANSPORTATION OF PERSONS BY AIR. (a) In General.—Section 4261 (relating to imposition of tax on transportation of persons by air), as previously amended by this Act, is amended by redesignating subsection (h) as subsection (i) and by inserting after subsection (g) the following new subsection:111 STAT. 1053 “(h) Exemption for Skydiving Uses.—No tax shall be imposed by this section or section 4271 on any air transportation exclusively for the purpose of skydiving.”. (b) Transportation Treated as Noncommercial Aviation.—The last sentence of section 4041(c)(2) is amended by inserting before the period “or by reason of section 4261(h)”. (c) Effective Dates.— (1) Subsection (a).—The amendment made by subsection (a) shall apply to amounts paid after September 30, 1997. (2) Subsection (b).—The amendment made by subsection (b) shall take effect on October 1, 1997.