SmartWay Transport

Frequently Asked Questions

When did 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 certain 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 semitrailer.  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?

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 provides taxpayers with a comprehensive explanation of federal excise taxes.  Chapter 6 of Publication 510 provides information regarding the retail tax on heavy trucks, trailers, and tractors.  Publication 510 is available on the IRS website. For additional information regarding the tax exempt status of idling reduction devices, please refer to the Instructions for Form 720, Quarterly Federal Excise Tax Return.

Who can I contact with tax questions regarding the excise tax exemption for idling reduction devices?
 
Please contact Stephanie Bland or Celia Gabrysh at the IRS with any tax questions regarding 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 1 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:
www.epa.gov/smartway/transport/what-smartway/idling-reduction.htm.

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 idling of tractors.  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 at: www.epa.gov/smartway/transport/what-smartway/idling-reduction-fet.htm.

How does EPA approve idling reduction devices?
    
EPA evaluates idle reduction technologies 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.  EPA has also conducted emissions testing and emissions modeling for a variety of idle reduction technologies within a specific technology category such as heaters or auxiliary power units.

Currently EPA evaluates idling reduction technologies and conducts an initial engineering analysis to determine if the device should be accepted as a verified technology within a specific technology category.

If I’m a technology vendor, how do I add my product to EPA’s approved technology list?

EPA will periodically add products to the technology list eligible for the federal excise tax exemption.

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

NOTE: Adobe Acrobat Reader is available as a free download. See EPA's PDF page to learn more about PDF, and for a link to the free Acrobat Reader.