DOT Revises Second-Half 2023 SIFL Rates

The U.S. Department of Transportation has revised the Standard Industry Fare Level (SIFL) rates for the six-month period from July 1, 2023 to December 31, 2023. These rates are needed in order to apply the IRS’s aircraft valuation formula to compute the value of non-business transportation aboard employer-provided aircraft and impute the income of the employee as required by the Internal Revenue Service Rules Section 1.61-21(g).

The SIFL rates for the six-month period from July 1, 2023 to December 31, 2023, are: 0500 miles $0.2898; 501-1,500 miles $0.2210; over 1,500 miles $0.2124; and Terminal Charge of $52.98.

The “aircraft multiples” (listed in Treas. Reg. § 1.61.21(g)(7)), which are determined by (1) whether the income is to be imputed to a control or non-control employee and (2) the maximum certified takeoff weight of the aircraft, have not changed.

If you are an employer and you fly an employee or a non-employee guest or family member on your aircraft, the flight is potentially taxable to the individual receiving the ride. The aircraft valuation formula applies on a per-flight, per-person basis and will be calculated using the distance in statute miles from where the individual boards the aircraft to where the individual deplanes.