SmartWay Technology Program

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 EPA, in consultation with the Secretary of Energy and the Secretary of Transportation, has determined that the devices (listed below under the FAQs) 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 this 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 below.

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 more information about 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 Internal Revenue Service (IRS), Department of Treasury at (202) 622-3130.

Federal Excise Tax Exemption FAQs

Click on the questions below to see detailed answers.

"You will need Adobe Reader to view some of the files on this page. See EPA's PDF page to learn more."

When did some idling reduction devices become exempt from the federal excise tax?: On October 3, 2008, the President signed into law the Emergency Economic Stabilization Act of 2008 (Public Law 110-343). This law also enacted the Energy Improvement and Extension Act (EIEA) of 2008. Specifically, section 206 of the EIEA excludes some idling reduction devices and advanced insulation from the federal excise tax.
Does the excise tax exemption apply to idling reduction devices installed on all vehicles?: No. The exemption is only available for idling reduction devices installed on tractors. A tractor is a highway vehicle designed to tow a vehicle, such as a trailer or semi-trailer (aka an 18-wheeler). A tractor may carry incidental items of cargo when towing or limited amounts of cargo when not towing. (Reference: IRS Publication 510)
Does the consumer directly benefit from the federal excise tax exemption for idling reduction devices?: No. The excise tax on idling reduction devices is a tax on the retailers of the devices, not a tax on the consumer of such devices. Therefore, the direct beneficiary of the tax exemption is the retailer, not the consumer. See IRS Publication 510 for more information on the tax on idling reduction devices.
Where can I find information about federal excise taxes and how they work?: IRS Publication 510 offers a comprehensive explanation of federal excise taxes. Chapter 6 of Publication 510 offers information about the retail tax on heavy trucks, trailers, and tractors. Publication 510 is available on the IRS website. For more information regarding the tax exempt status of idling reduction devices, please read the instructions for Form 720, Quarterly Federal Excise Tax Return.
Who can I contact with tax questions about the excise tax exemption for idling reduction devices?: Contact the IRS Department of Treasury with any tax questions about idling reduction devices. They can be reached at (202) 622-3130.
Where can I find information about idling reduction?: Each year in the United States, the trucking industry consumes over one billion gallons of diesel fuel and emits over 11 million tons of CO2 and 200,000 tons of NOx while trucks are at idle. For more information about the benefits of idling reduction, please visit our strategies page.
What is EPA's role in this federal excise tax exemption?: EPA, in consultation with the Departments of Energy and Transportation, identifies all eligible devices that reduce tractor idling. EPA publishes the list of approved idling reduction devices that are exempt from the federal excise tax.
Where can I find the list of EPA approved idling reduction devices?: The complete list of EPA approved idling reduction devices can be found on the Eligible Products list.
How does EPA approve idling reduction devices?: EPA evaluates idling reduction technologies by conducting emissions testing and engineering analyses to determine if a device should be approved as a verified technology. EPA also uses information gathered from EPA-funded grant projects, cooperative agreements, demonstration projects and external peer-reviewed reports to inform their decision.
If I'm a technology vendor, how do I add my product to EPA's approved technology list?: Vendors should contact Victor McMahan at mcmahan.victor@epa.gov or 202-343-9259 for more information.

Criteria for Federal Excise Tax Exemption

An idle reduction technology is defined a technology or device that:

is affixed to a tractor;
is designed to provide services (such as heat, air conditioning, and/or electricity) to the vehicle or equipment that would otherwise require the operation of the main drive engine while the vehicle or equipment is temporarily parked or remains stationary; and
reduces unnecessary idling of the vehicle or equipment.

EPA and the Department of Energy have evaluated idle reduction technologies and devices as part of grants, cooperative agreements, emissions testing, engineering analyses, modeling, demonstration projects and external peer reviewed reports to study the effects of idling on air quality, fuel consumption and driver health.

Based on this evaluation and research, EPA has determined that a variety of idle reduction technologies save fuel and reduce emissions when compared to idling the main engine. Qualified devices are added to EPA's list of verified idling control technologies; in the future, additional technologies and devices can be added to this list.

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.

Manufacturers should contact Anthony Erb at erb.anthony@epa.gov or 202-343-9259 for more information.

The devices listed on the exempted technology list (see "Eligible Products for the Federal Excise Tax Exemption" below) save fuel and reduce emissions when compared to idling the main engine.

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
Battery Air Conditioning/Heating Systems
Auxiliary Power Units/Generator Sets
Thermal Storage Systems
Shore Connection Systems

Fuel Operated Heaters

Automotive Climate Control (ACC) / Fuel Fired Heater (air-to-air) FFHD 2
Espar / D1LC
Espar / D3LC
Espar / Airtronic D2
Espar / Airtronic D4
Espar / Hydronic 5
Espar / Hydronic 8-10-12
Teleflex A2
Teleflex A4
Teleflex X45
Volvo 41-11
Webasto / Air Top 2000 ST (new version of Air Top 2000)
Webasto / Air Top Evo 3900 (new version of Air Top 3500)
Webasto / Air Top EVO 5500 (new version of Air Top 5000)
Webasto / DBW 2010
Webasto / DBW 2020/300
Webasto / NGW 300
Webasto - TSL 17 (Thermo Top C/Z)
Webasto / Thermo 50
Webasto / Thermo 90 ST (new version of Thermo 90S)
Webasto / Thermo 230/300/350

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Battery Air Conditioning/Heating Systems

All Around Contracting LLC / Kool Rig System
AuraGen - Inverter/Charger System
Bergstrom, Inc - NITE
Cool Moves / Models: Bycool Mochila and Bycool Revolution
Cool Moves / Models: Minicool Compact and Minicool Dinamic
Cool Moves - Rencool / Models: RDK4 and RTK5
DC Power Solutions - APU/AC System
Diamond Power Systems LLC/ Models: DPS 10K-DC and DPS 15KB
Dometic Corp. - Sleeper AC
Driver Comfort System - Driver Comfort System
Energy Xtreme Independence Package Long-Haul Comfort System - battery APU/AC system
Freightliner Cascadia - Park Smart System
Glacier Bay - ClimaCab
Hammond Air Conditioning, LTD - Artic Breeze
Idle Free Systems - Reefer Link System I
Indel B Sleeping Wel - Arctic 1000, Arctic 2000, Oblo
NAS, LLC / Comfort Cab - Model: 100 M (Battery HVAC)
Navistar - MaxxPower Battery HVAC System (with Espar E-Guardian Heater and insulated sleeper curtain)
Paddock Solar - Paddock Solar
Peterbilt - Comfort Class System
Safer Corporation - VIESA
Sobo Inc./ Kingtec Technologies (Heyuan) Co. Ltd. - Model: Sleeper AC 12K10F3-1
Sun Power Technologies - Sleeper AC
Thermo King TriPak - e
Volvo - 971-001/2

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Auxiliary Power Units/Generator Sets

ACEMCO Power Systems, LLC / Model: ACEMCO Power Unit Series 1
Airworks Compressors Corp / Model: Fusion APU
Big Rig Products / Model: Nite Hawk
Carrier Transicold - ComfortPro
Centramatic - Centramatic
Diamond Power Systems, LLC - Diamond Power System
Dunamis Power Systems - Promax
Hodyon LP - Dynasys APU
Kohler- 3APU, 7 APU
Life Force - Life Force
Mantis Metalworks, LLC - Model 175
McMillan Electric Company / Model: IdleTime 4500-300
McMillan Electric Company / Model: IdleTime 4500-400
Midwest Power Generators - MPG702
Navistar - Fleetrite APU, MaxxPower APU w/ HVAC
Navistar Fleetrite by Mobile Thermo Systems Inc./ Models: INTAPU146 and INTAPUT46
Parks Industries, LLC: Model Hp 2000
Pony Pack, Inc. - Pony Pack
Power Technology Southeast - PowerPac
RigMaster Power by Mobile Thermo Systems Inc. / Model: MTS T4-6
Star Class - GEN-STAR 4500, GEN-STAR 6000
Thermo King Corp. - TriPac
TRIDAKO Energy Systems - Power Cube
Volvo - 971-003/4 (optional 82A-B1X)
Willis Power Systems - Willis APU

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Thermal Storage Systems

Autotherm Division Enthal Systems, Inc / T-2500 Energy Recovery System (ERS)
Webasto / BlueCool Truck

Shore Connection Systems

Comfort / Duo-Therm heat pump
Freightliner’s Shorepower System
Phillips and Temro Industries / Cab Power 8500633
Shurepower, LLC / Shurepower
Volvo 5H-A1 / 120 V Shore Power Kit
Volvo LN-A1 /Inverter Charger Kit
Xantrex Technology / TRUCKPOWER Inverter/Charger & Cab

***List of Technologies No Longer Eligible for Federal Excise Tax Exemption***

Notice: On March 21, 2012 the verification status of the following devices changed:

APU

Due to a change in ownership the Comfort Master (APU) has been renamed "ACEMCO Power Unit 1" and is now sold by ACEMCO Power Systems, LLC.

Notice: On August 18, 2011 the verification status of the following device(s) changed:
EPS (TSE)

1. Teleflex, Inc.; no longer manufactured
2. Navistar/Bergstrom - 12V Aux No-Idle HVAC; no longer manufactured

Notice: On May 12, 2011 the verification status of the following devices changed:

APUs

Idle Solutions - Idle Solutions; business status unavailable
Kool Gen - KG-1000; business status unavailable
Stark Mfg., LLC/ Parks Industries , LLC - HP2000; duplicate listing
Truck Gen - UCT 2-5.5, UCT-APU; no longer manufactured nor providing service

Notice: On April 05, 2011, the verification status of the following devices changed:

APUs

Aux Generators Inc. - Idle Hawk; business status unavailable
Cummins - Comfort Guard; no longer manufactured
Cummins Onan - Quiet Diesel; no longer manufactured
Double Eagle Industries - Gen-Pac; business status unavailable
Flying J Inc - Cab Comfort System; no longer manufactured
Frigette Truck Climate Systems - APU, Gen Set 1, Gen Set 2; out of business and no longer manufactured
Idlebuster - Idlebuster; suspended all operations
Gates Corporation - Cab Runner; no longer manufacturing nor providing service.

Notice: On June 17, 2010, the verification status of the following devices changed:

APUs

Auxiliary Power Dynamics, LLC; is now Willis Power systems - the Willis APU is listed
Black Rock System - Black Rock; is out of business and is no longer listed
Mechron Power Systems - CCS Lighting Cab Comfort; Mechron discontinued the CCS Lighting Cab Comfort subsequently it is no longer listed.

Notice: On November 23, 2010, the verification status of the following device changed:

BACs

EnergyXtreme - PPEX60, PPEX80; discontinued,no longer available for class 8,heavy duty, long haul trucks

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