104 STAT. 1388-440 PUBLIC LAW 101-508 —NOV. 5, 1990 "(1) IN GENERAL.—The tax imposed by this section shall not apply to the sale of any aircraft if 80 percent of the use by the purchaser is in any trade or business. "(2) PROOF OF BUSINESS USE.— On the income tax return for each of the 1st 2 taxable years ending after the date an aircraft on which no tax was imposed by this section by resison of paragraph (1) was placed in service, the taxpayer filing such return shall demonstrate to the satisfaction of the Secretary that the use of such aircraft during each such year met the requirement of paragraph (1), " (3) IMPOSITION OF LUXURY TAX WHERE FAILURE OF PROOF. —If the requirement of paragraph (2) is not met for either of the taxable years referred to therein, the taxpayer filing such returns shall pay the tax which would (but for paragraph (1)) have been imposed on such aircraft plus interest determined under subchapter C of chapter 67 during the period beginning on the date such tax would otherwise have been imposed. If such taxpayer fails to pay the tax imposed pursuant to the preceding sentence, no deduction shall be allowed under section 168 for any taxable year with respect to the aircraft involved. "(d) OTHER EXCEPTIONS.—The tax imposed by this section shall not apply to the sale of any aircraft for use by the purchaser exclusively— "(1) in the aerial application of fertilizers or other substances, "(2) in the case of a helicopter, in a use described in paragraph (1) or (2) of section 4261(e), "(3) in a trade or business of providing flight training, or "(4) in a trade or business of transporting persons or property for compensation or hire. "SEC. 4004. RULES APPLICABLE TO SUBPART A. "(a) EXEMPTION FOR LAW ENFORCEMENT USES, ETC.—No tax shall be imposed under this subpart on the sale of any article— "(1) to the Federal Government, or a State or local government, for use exclusively in police, firefighting, search and rescue, or other law enforcement or public safety activities, or in public works activities, or ' (2) to any person for use exclusively in providing emergency medical services. " (b) SEPARATE PURCHASE OF ARTICLE AND PARTS AND ACCESSORIES THEREFOR.— Under regulations prescribed by the Secretary— "(1) IN GENERAL.— Except as provided in paragraph (2), if— "(A) the owner, lessee, or operator of any article taxable under this subpart (determined without regard to price) installs (or causes to be installed) any part or accessory on such article, and "(B) such installation is not later than the date 6 months after the date the article was 1st placed in service, then there is hereby imposed on such installation a tax equal to 10 percent of the price of such part or accessory and its installation. "(2) LIMITATION. —The tax imposed by paragraph (1) on the installation of any part or accessory shall not exceed 10 percent of the excess (if any) of— "(A) the sum of— "(i) the price of such part or accessory and its installation,
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