IRS expected to extend comment period for proposed off-road machinery tax

The IRS is expected to extend its Sept. 4 deadline for comments on a proposed rule that would tax off-road construction equipment.

If implemented, the rule would end exemption from excise and fuel taxes for any non-farm equipment that could be used on roads, regardless of whether its primary use is off-road.

The Internal Revenue Service proposed the rule in June. According to the Associated General Contractors of America, the rule would subject off-road construction equipment to the new vehicle excise tax, currently 12 percent of the purchase price, motor fuels taxes (18.4 cents per gallon for gas and 24.4 cents per gallon for diesel), tire excise taxes and an annual heavy vehicle tax based on weight and capped at $550.

Sen. Kit Bond, R-Mo., has written the IRS requesting the deadline for industry comments on the proposal be extended 90 days. AGC officials say they expect IRS to grant the extension.

Kevin Strickland