Factored into the cost of fuel is an excise tax. This is a tax that most people have never heard of but have paid for every time they purchase fuel. Fortunately, the IRS has created an opportunity to recover some of these excise taxes depending on the use of the fuel. Fuel purchased for refrigerated truck use is eligible! Additionally, when it comes to tax recovery, refrigerated trucks are one of the leading qualifiers of returned tax funds.
Unfortunately, most consumers aren’t aware that fuel used to power refrigerated trucks can be claimed as a tax credit. That’s why we are here! The team at TiP Excise has made it our business to help you recover your money. Therefore, excise tax recovery can be a complex and involved process, but we are here to make your fuel tax recovery efficient and effective.
What is an Excise Tax?
Different from sales tax, federal excise taxes only apply to specific goods, services or activities. A short list of these includes:
- Alcohol and tobacco products
- Indoor tanning
- Airfare and jet fuel
An excise tax can be applied as a per unit tax or as a percentage of the price. This is levied at the time of production or when a service is rendered, then factored into the product’s cost. This means that a consumer generally doesn’t know that an excise tax has already been included in the price paid for a good or service.
The Age of Delivery Depends on Fuel
We are living through a time of consumer evolution. The number of people leaving their homes to make a trip to shop at a brick-and-mortar store is dwindling every year. We’ve gone from “Paper or plastic?” to “1 or 2-day shipping?” It’s the age of delivery! The demand for delivery services has propelled the business world to adapt and transform to meet the needs of this growing trend.
A major component of our consumer-driven delivery system is refrigerated transportation. Many industries depend on refrigerated trucks to transport goods and services throughout the supply chain. However, using refrigerated trucks doesn’t come without some financial setbacks. One of those is the expense of regularly fueling these sometimes large and heavy trucks.
Which Industries with Refrigerated Trucks Qualify for Excise Fuel Credit?
Delivery of fresh and temperature-controlled products like produce, meat, dairy, etc. to supermarkets, convenience stores, and specialty markets is essential to the grocery industry.
- Grocery delivery
Growing in popularity, groceries delivered to your door require special attention to ensure the proper temperature is used throughout transport.
- Foodservice Companies
Heavily reliant on refrigerated trucks, regular transport of meat, seafood, fruits, and vegetables must maintain the integrity and safety of the ingredients. For example, seafood spoils quickly and must be transported and delivered in a specific way to pass food safety standards.
- School districts
Florists or Landscapers
- Transporting in a temperature-controlled environment maintains the freshness of flowers, plants, and greenery.
- The hospitality and service industries are some of the most significant users of refrigerated trucks and heavily depend on safe food transport.
- Pharmaceutical products must be transported in temperature-controlled trucks, from manufacturer to pharmacy. Medicines and vaccines must be transported at specific temperatures or risk degrading and losing potency.
- There are lots of ways that hospitals rely on temperature-controlled transportation. Medical equipment, organ donations, and even the deceased need to be transported in refrigerated trucks.
Alcohol or beverage providers
- The life of beer or wine can be maximized when carried in a climate-controlled truck. Optimal transportation temperatures fall between 50 and 60 degrees Fahrenheit. This works best to slow oxidation and preserve taste and freshness. This is best accomplished with a refrigerated truck.
Beauty Industry Companies
- Hygiene products, perfumes, and cosmetics all require refrigerated transport.
Museum/Art Gallery Industry
- Fine art and archaeological artifacts are incredibly fragile and sensitive to temperature. Therefore, they are considered “perishable goods.” They rely heavily on refrigerated trucking to safely transport pieces from place to place.
- This industry also relies on refrigerated trucks to deliver medicines, food, and other temperature-sensitive equipment.
- Refrigerated trucks are vital to getting meals from prep kitchen to plane at food-safe temperatures.
- Research labs rely on refrigerated trucks to deliver fragile samples and research materials.
Ice Cream/Frozen Treat Vendors
- This one is obvious, but we just couldn’t leave out the neighborhood ice cream truck. They pay taxes, too!
Are There Other Refrigerated Vehicles Eligible for Excise Fuel Tax Credit?
YES! Any business that uses a climate-controlled vehicle to transport its products is eligible. However, this includes both on and off-road operations. For example, you may not physically transport refrigerated goods across many miles, but even refrigerated vehicles used to move goods in a warehouse or to another site qualify. Major food retailers, providers, and businesses that serve food regularly can include:
- Cruise lines
- Golf Courses
Excise Fuel Tax Experts Can Assist You
As industries continue to adjust, evolve, and grow to meet the needs of deliverable goods and services, the need for global and regional refrigerated transportation will increase even more. Don’t get left behind, and don’t leave your money on the table! Now is the time to learn how you can save money by claiming excise taxes paid to fuel these transportation methods.
However, this is not always a simple process. That’s why we’ve taken years to grow in our knowledge, experience, and expertise in managing all things related to fuel excise tax credit. By providing us with some basic information about your business, we are confident that we can fully and dependably take over and complete the rest of the tax credit process for you.
A Little More About TiP Excise
Our company has spent more than twenty years assisting business owners in getting their excise tax refunds. This is our expertise, and we guarantee you will receive the refund that is owed to you. You can learn more about excise taxes and how to receive the benefits of them from the help of our team of experts.
Contact us today! Let’s move forward with a customized and personal strategy to make the most of your fuel tax credit.