Legislation On Hold to Preserve Mobile Crane Excise Tax Exemption

September 23, 2004—Legislation in the House and Senate that would preserve the excise tax exemption for mobile cranes and other mobile machinery has likely stalled until early next year, reports the SC&RA Newsletter in its Sept. 10, 2004 issue. This is according to Craig Piercy, executive director of the Mobile Machinery Coalition (MMC), which was formed in 2002 to fight an IRS proposal to eliminate the mobile machinery exemption. SC&RA is a member of the coalition.

Provisions involving the excise tax exemption are included in the highway transportation bill. The current law has been extended repeatedly, and still another extension seems probable, keeping enough money in the pipeline for ongoing projects to continue. The exemption also is being considered within a corporate tax bill, but the issue most likely will be resolved through the highway transportation bill.

MMC also has been monitoring court cases, particularly Florida Power and Light Group, Inc. v. The United States. In that case, the Federal Court of Claims in Florida ruled that the utility's equipment (mostly derricks and bucket trucks) were not eligible for excise tax refunds because they did not have chassis that served "only as a mobile carriage" for the equipment. The judge found that since each of the trucks had pintle hooks that might be used to tow additional equipment, the chassis was not "only" for the equipment. That decision should have little bearing on the operations of most SC&RA members, noted Piercy. And legislation could render the case moot.