26 U.S.C. § 4483 — Exemptions

(a) State^* and local governments. Under the Secretary's regulations, section 4481's tax does not apply to a State's or its political subdivision's use^* of a highway motor vehicle^*.

(b) United States. The Treasury Secretary^* may exempt the United States' use of a particular highway motor vehicle or class of vehicles if the tax would cause a substantial burden or expense that the exemption would avoid, and the full benefit would go to the United States.

(c) Certain transit buses. Under the Secretary's regulations, the tax does not apply when a person meeting the 60-percent passenger-fare-revenue test in section 6421(b)(2), using the period specified there (as that provision existed the day before the Energy Tax Act of 1978), uses a transit-type rather than intercity bus. The person must have met the test during the last 3 months of the preceding year^*, or another period the Secretary specifies.

(d) Trucks used fewer than 5,000 miles. (1)(A) If it is reasonable to expect that a highway motor vehicle will be used on public highways fewer than 5,000 miles during a taxable period^*, and its owner gives the Secretary the required information about expected use, collection of the section 4481 tax is suspended for that period. (B) The suspension ends when use during the period exceeds 5,000 miles. (2) No tax is imposed for the period if collection was suspended, the vehicle was not used more than 5,000 miles, and, unless regulations provide otherwise, the owner gives the required information about actual use. (3) If the tax was paid and those last two requirements are met, the payer receives a credit or refund without interest. (4) Under regulations, an old owner is not liable, and the new owner is liable, when the vehicle is transferred while the suspension is in effect and the old owner provides the required transfer information. (5)(A) For an agricultural^* vehicle, replace 5,000 with 7,500 in paragraphs (1) and (2). (B)(i) “Agricultural vehicle” means a highway motor vehicle used mainly for farming and registered under State law as a highway motor vehicle used for farming. (ii) “Farming purposes” means transporting a farm commodity to or from a farm or using the vehicle directly in agricultural production. (iii) “Farm commodity” means an agricultural or horticultural commodity, feed, seed, fertilizer, livestock, bees, poultry, fur-bearing animals, or wildlife. (6) For this subsection, “owner” means the person described in section 4481(b).

(e) Logging trucks. The section 4481 tax is reduced by 25 percent for a highway motor vehicle used exclusively during a taxable period to transport products harvested from a forested site to and from a point on that site, if the vehicle is registered under State law for transporting harvested forest products.

(f) Repealed.

(g) Mobile machinery. Section 4481's tax does not apply to a vehicle described in section 4053(8).

(h) Blood collection vehicles. (1) The tax does not apply to a qualified blood collector vehicle used by a qualified blood collector organization. (2) “Qualified blood collector vehicle” means a vehicle at least 80 percent of whose use during the prior taxable period was by such an organization to collect, store, or transport blood. (3) A vehicle first placed in service during a taxable period qualifies for that period if the organization certifies to the Secretary that it reasonably expects at least 80 percent of its use during that period to be for those blood-collection purposes. (4) “Qualified blood collector organization” has the meaning given in section 7701(a)(49).

(i) Termination. Subsections (a) and (c) do not apply on or after October 1, 2029.