A bill to amend the Internal Revenue Code of 1954 to provide for the reduction of certain excise taxes on the transportation of persons and property by air.

Amends the Internal Revenue Code to reduce the rate of the airline ticket tax from eight percent to six percent upon the effective date of the imposition of an aircraft noise reduction surcharge approved by the Civil Aeronautics Board under a proposed amendment to title IV of the Federal Aviation Act of 1958 contained in the proposed Aircraft Noise Reduction Act of 1977.

Reduces the rate of tax on transportation of property by airline from five percent to three percent upon the effective date of the imposition of the same noise reduction surcharge.

Amends the Airport and Airway Revenue Act of 1970 (relating to permissible expenditures from the Airport and Airway Trust Fund) to allow Trust Fund monies to be used for the following two new purposes provided for in amendments to the Airport and Airway Development Act of 1970 contained in the proposed Aircraft Noise Reduction Act of 1977: (1) grants to aircraft operators for the purpose of retrofitting aircraft for noise reduction purposes; and (2) grants to airports under the Airport Development Aid Program for the purchase and installation of noise monitoring equipment.