### Question
How is the term fractional ownership aircraft program defined?


### Answer
The term **fractional ownership aircraft program** is defined in *26 U.S.C. § 4043* as the following:

> a program under which—


(A) a single fractional ownership program manager provides fractional ownership program management services on behalf of the fractional owners,


(B) there are 1 or more fractional owners per fractional program aircraft, with at least 1 fractional program aircraft having more than 1 owner,


(C) with respect to at least 2 fractional program aircraft, none of the ownership interests in such aircraft are—


(i) less than the minimum fractional ownership interest, or


(ii) held by the program manager referred to in subparagraph (A),


  

(D) there exists a dry-lease aircraft exchange arrangement among all of the fractional owners, and


(E) there are multi-year program agreements covering the fractional ownership, fractional ownership program management services, and dry-lease aircraft exchange aspects of the program

#### Citation:
  - *26 U.S.C. § 4043*
  - Heading: **Subtitle D-Miscellaneous Excise Taxes > CHAPTER 31-RETAIL EXCISE TAXES > Subchapter B-Special Fuels**

