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Federal Excise Tax Exemption

In the Energy Improvement and Extension Act (EIEA) of 2008 (PL 110-343), Section 206 excludes certain idling reduction devices and advanced insulation from the federal excise tax.  This law amends section 4053 of the Internal Revenue Code.

For purposes of section 4053(9)(B) of the Internal Revenue Code, the Administrator of the Environmental Protection Agency, in consultation with the Secretary of Energy and the Secretary of Transportation, has determined that the devices listed below reduce the idling of a tractor at a motor vehicle rest stop or other location where such vehicles are temporarily parked or remain stationary. For the purposes of EIEA, the effective date of the list is the first day after the enactment of EIEA (October 4, 2008). Companies interested in adding their technology to this list should contact EPA after reviewing the criteria for product eligibility.

Motor carriers must ensure that all devices installed on Commercial Motor Vehicles conform to the Federal Motor Carrier Safety Regulations, 49 CFR 393, Parts and Accessories Necessary for Safe Operation.  Those regulations of particular concern to users of auxiliary power units are contained in Section 393.28, Section 393.30, and SubPart E of Part 393.  These requirements dictate the specifications of installation of wiring and fuel systems for this equipment.

For additional information regarding the tax exempt status of these idling reduction devices, please refer to the instructions for Form 720, Quarterly Federal Excise Tax Return, found at www.irs.gov. You may also contact Stephanie Bland or Celia Gabrysh from the IRS at (202) 622-3130.

Eligible Products for the Federal Excise Tax Exemption

These idling reduction technologies are organized by the technology type and listed by company/model:

Fuel Operated Heaters

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Battery Air Conditioning/Heating Systems

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Auxiliary Power Units/Generator Sets


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Thermal Storage Systems

Shore Connection Systems

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Related Links

Product exemption eligibility criteria

Frequently Asked Questions about the federal excise tax exemption

Detailed information about currently available idle reduction technologies for heavy-duty diesel engines in trucks and locomotives

 

SmartWay Transport is maintained by EPA's Office of Transportation and Air Quality (OTAQ).

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