Aviation Grant Programs
Federal Block Grant
Federal Block Grant funding is generated through federal taxes collected nationally on airline tickets, freight waybills, international departure fees, and sale of avgas and jet fuel, which is deposited into the Federal Aviation Administration (FAA) Aviation Trust Fund.
Congress appropriates funds for the Airport Improvement Program (AIP) each year, and Pennsylvania receives a percentage of the total authorization based on area/population. Pennsylvania became a block grant state in 1998 and assumed responsibility for programming approximately $15 million annually.
The BGP is available only to general-aviation airports, airports designated as reliever airports, and non-primary commercial airline airports (those with less than 10,000 annual enplaned passengers) that are part of the National Plan of Integrated Airport Systems, as approved by the FAA. Airports receive up to 95 percent of eligible project costs for projects included in the Federal Airport Capital Improvement Program and the state’s 12-Year Transportation Program.
State Aviation Development Program
The State Aviation Development Program is funded through the collection of state taxes on jet fuel, and the revenues are deposited into Pennsylvania's Aviation Restricted Account in order to preserve, upgrade, and, when practical, build new airport facilities.
These funds are typically used to pay for up to a maximum of 75 percent of the total eligible project costs and 50 percent of the non-federal share of federally funded projects.
The amount available for funding through the ADP averages approximately $6 million annually.
Transportation Assistance Program (Capital Budget)
Appropriately licensed Public-Use airports are also eligible to receive Transportation Assistance Program funding. This funding comes directly from the state's General Fund for the purposes of improving the state's aviation infrastructure.
Projects receiving funding may receive up to 75 percent of the non-federal amount for federally eligible projects and a state reimbursement of up to 50 percent for non-federally eligible projects.
Real Estate Tax Reimbursement Program
The Real Estate Tax Reimbursement Program is funded through the collection of a state tax on avgas that are deposited into the state's Aviation Restricted Account. The program allows for annual reimbursement of local real estate taxes paid by qualifying public airport owners.
Reimbursement is limited to local real estate taxes paid only on those areas of airport property that have a direct aviation-related use.