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Aviation Fuel Tax

Notice

IDOT Division of Aeronautics recently hosted an Aviation Fuel Tax Webinar to provide an overview of the grant application process for airport directors, managers, grant administrators and those others involved in the operation of public-use airports across the state of Illinois. You can find a recording of the webinar below under the Resources section of this page as well as a copy of the presentation.

Purpose

A portion of State sales tax on aviation fuel is subject to the Federal Aviation Administration (FAA) revenue-use requirement. To comply with the FAA’s Policy Concerning the Use of Airport Revenues; Proceeds from Taxes on Aviation Fuel, the State Aviation Program Fund and Aviation Fuel Sales Tax Refund Fund were created under 30 ILCS 105/6z-20.1 and 30 ILCS 105/6z-20.3, respectively. The moneys shall be used for the purpose of distributing grants to units of local government to be used for airport-related purposes.

Per the FAA, under this program, the granted funds are “considered to be airport revenue and subject to the revenue-use requirement. Airport revenues can only be expended for the capital or operating costs of the airport; the local airport system; or other local facilities owned or operated by the airport owner or operator and directly and substantially related to the air transportation of passengers or property.”

Additionally, FAA’s Airport Compliance Manual – Order 5190.6B – Change 3 can be utilized to provide additional informal on airport revenue use requirements. Such costs can only be paid for once and not previously requested under other programs.

Funding

Subject to appropriation, funds will be distributed based on a mandated formula. In summary, the funds are first divided in three equal parts corresponding to enplanements, total cargo and airport operations, and then distributed proportionally to each airport with recorded activity in these categories. The total fund amount will vary from year to year based on the amount of tax revenue collected.

Statute 30 ILCS 105/6z-20.1 does not dictate data sources or data dates, however airport operations and air traffic data is obtained from public facing FAA websites. Data is collected for a full calendar year and is available at the end of the Federal fiscal year. This data is used in the calculations for the next full State fiscal year (i.e., calendar year 2021 data determines fiscal year 2023 allocations).

Eligibility

Eligible applicants are public-use public-owned airports in Illinois.

Recipients of grants are referred to as "Sponsors". Sponsors must be legally, financially and otherwise able to carry out State and Federal grant assurances and obligations contained in the project application and grant agreement, including the ability to meet and comply with the Grant Accountability and Transparency Act (GATA).

Required Forms

Instructions

Step-by-Step Guide

Potential eligible applicants should follow the instructions as dictated in the Aviation Fuel Tax Program Notice of Funding Opportunity posted on October 22, 2021.

Upon review and successful completion of the required forms, an Aviation Fuel Tax grant agreement will be executed.

Once the agreement is executed, a notification will be sent out by the Illinois Division of Aeronautics Bureau Chief of Administrative Services that invoices can be submitted for costs incurred to be covered by these funds using the latest AER-1961 Vendor Invoice form.

Upon review and approval of the invoices submitted, allocations will be distributed out of the fund to the applicant.

All required documents and invoices are to be submitted to dot.aero.aft@illinois.gov.

Key Information

Name of the Awarding State Agency: Illinois Department of Transportation
Catalog of State Financial Assistance (CSFA) Number: 494-60-2511
Catalog of State Financial Assistance (CSFA) Short Description: Aviation Fuel Tax
Funding Opportunity Number: 22-2511-1
Funding Opportunity Title: Aviation Fuel Tax Program
Proposed Project Term: Notice-to-Proceed Date (START) plus Five (5) Years (END)

AFT Fiscal Year 2020-2021

Notice-to-Proceed Date: July 1, 2019
Service Dates: July 1, 2019 to June 30, 2021
IL Project No.: ILL-4695

AFT Fiscal Year 2022

Notice-to-Proceed Date: July 1, 2021
Service Dates: July 1, 2021 to June 30, 2022
IL Project No.: ILL-4701

AFT Fiscal Year 2023

Notice-to-Proceed Date: July 1, 2022
Service Dates: July 1, 2022 to June 30, 2023
IL Project No.: ILL-5108

AFT Fiscal Year 2024

Notice-to-Proceed Date: July 1, 2023
Service Dates: July 1, 2023 to June 30, 2024
IL Project No.: ILL-5156