Bill > HB4741

This bill modifies the Texas Tax Code by expanding the definition of a "certificated air carrier" to include not only carriers engaged in interstate or intrastate commerce under U.S. Department of Transportation authority, but also fractional aircraft operators that operate under specific Federal Aviation Administration (FAA) regulations (14 CFR Part 91 subpart K and 14 CFR Part 135). This change appears to broaden the tax classification for certain air transportation businesses, potentially affecting how their taxable value is allocated. The bill will take effect on September 1, 2025, giving businesses and tax authorities time to prepare for the updated definition. By adding a second category of certificated air carriers, the legislation seems intended to provide a more comprehensive tax treatment that recognizes different types of commercial aviation operations beyond traditional full-service airlines.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB4741