TAX FILE

The Internal Revenue Service has extended the period for commenting on its proposal to end the mobile machinery exemption until December 4. The proposal, published in the June 6 Federal Register, would end an exemption that dates to the inauguration of highway trust fund taxes in 1956 for self-propelled cranes, digger derricks and a variety of other equipment that operates primarily off-road but uses

The Internal Revenue Service has extended the period for commenting on its proposal to end the “mobile machinery” exemption until December 4. The proposal, published in the June 6 Federal Register, would end an exemption that dates to the inauguration of highway trust fund taxes in 1956 for self-propelled cranes, digger derricks and a variety of other equipment that operates primarily off-road but uses highways to reach a jobsite.

Meanwhile, a coalition of more than 25 associations has formed to oppose ending the exemption. If the IRS adopts its proposal, the 12% excise tax would apply to new equipment, and the diesel fuel, tire and heavy vehicle use tax would apply to thousands of existing vehicles that are currently exempt.

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