The IRS has announced it will hold a hearing Feb. 27 on its proposal to end several tax exemptions for vehicles that serve as permanent mounts for jobsite construction machinery, whether or not the vehicles are primarily used off-road.
The rule would subject such equipment to the new vehicle federal excise tax – currently 12 percent of the purchase price – tire excise taxes and an annual heavy vehicle tax based on weight and capped at $500. The government also would no longer give contractors refunds or tax credits for the fuel these vehicles use.
For more information on this issue, read our previous article by clicking the link in the right-hand column.
The deadline for public comment on the proposed rule change is Dec. 4. The Associated General Contractors of America is asking contractors who would be affected by the rule to contact the organization, which will file comments with the IRS in opposition to the proposal.
The Feb. 27 hearing on the issue will be held at 10 a.m. at IRS headquarters in Washington, D.C. For information about testifying at the hearing, contact Phil Thoden, ACG’s director of Congressional relations, tax and fiscal affairs, at email@example.com.