In The News

‘Bailout’ to provide excise exemption for APU purchasers

It’s been called a bailout, a giveaway, and a way of avoiding an economic recession among other things, but the $700 billion congressional plan being considered this week would also benefit some truck drivers.

The legislation, HR6049, includes an exemption to the excise tax on new APUs when they are bought with new trucks. The resolution – called the Renewable Energy and Job Creation Act of 2008 – has been rolled into the $700 billion bailout proposal.

New truck purchases include a 12 percent excise tax, and new APU purchases with new trucks also include an excise tax equal to 12 percent of the APU’s retail price. With the provision rolled into the $700 billion bailout plan, buyers of new trucks wouldn’t owe the 12 percent excise tax normally applied to the APU.

The House of Representatives voted down a previous bailout consideration on Monday, Sept. 29.

The Senate, however, approved a new version of the bailout with a 74-25 vote on Wednesday, Oct. 1. As of mid-afternoon Thursday, Oct. 2, the House had not voted on the latest version of the plan.