Aircraft Club: SIFL rates for first half of 2025 released

What happened?

This month, the Department of Transportation (DOT) released the cents-per-mile rates and terminal charge for the first half of 2025 for the Standard Industry Fare Level (SIFL) fringe benefits rules.

Why is it relevant?

When an employer allows an employee to use a company-provided private aircraft for personal reasons, a taxable fringe benefit has been extended to that employee. Under current law, the employer may choose to value these personal flights by either using (1) the general fair market value charter rate of a similar aircraft or (2) the special valuation rules known as SIFL.

Action to consider

The SIFL rates for the first half of 2025 are effective for personal flights taken by employees on employer-provided aircraft between January 1, 2025 and June 30, 2025. Affected employers should review the aircraft flight logs to determine which flights taken during that period were personal in nature to calculate and report the appropriate taxable fringe benefit amount to their employees.