This bill significantly increases taxes on fuel used by private jets while keeping taxes on commercial aviation relatively low. Starting January 1, 2026, private jet fuel will be taxed at 37.54 cents per gallon (35.9 cents plus $1.641 per gallon), compared to the current much lower rate. Commercial airline fuel remains taxed at 4.3 cents per gallon. The bill includes a safety valve: if someone can show reasonable cause that a private jet was being used for scientific research, disaster evacuation, or medical emergencies, they can get a refund of the extra tax paid. This exception expires on January 1, 2028.

The bill also eliminates a tax break that previously allowed certain private aircraft used for forestry work to avoid paying passenger transportation taxes, though they can still avoid the tax if they don't use public airport facilities.

Most importantly, all the extra tax revenue from the increased private jet fuel tax goes into a new "Clean Communities Trust Fund." This money funds air quality monitoring in neighborhoods near airports, public transit and rail improvements within 20 miles of airports, and bus service improvements—with at least half the money going to low-income and disadvantaged communities that suffer the most from air pollution. The tax rates will automatically increase each year after 2026 to keep up with inflation.