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 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.