TORONTO — After months of lobbying by he Ontario Trucking Association, the Canada Revenue Agency (CRA) has agreed to permit tax refunds for fuel used to run anti-idling devices, such as APUs.

According to OTA tax advisors, the wording of a recent CRA discussion document on the issue seemed to indicate that it would have been next to impossible for carriers to claim excise tax refunds for diesel fuel used to operate idling reduction equipment.

CRA’s new policy should provide increased advantage
for carriers investing in these anti idling devices, says OTA

The Canadian Trucking Alliance, with assistance from the Ontario Trucking Association and its tax advisors, worked with CRA to clarify the policy to ensure the mandate wouldn’t be interpreted by policy makers to preclude any future refund claims from trucking fleets.

Following several weeks of discussion, a new policy statement was issued, which separates the refund treatment of fuel used to propel a vehicle from that used for services such a heating/air conditioning, says OTA.

The key aspect of the new policy is that if after subtracting from the total fuel used to propel the vehicle; more than 50 percent of diesel fuel used after subtracting the fuel used to propel a vehicle is used to generate power for heating/air conditioning, the carrier will receive a refund of 100 percent of the excise tax paid on all diesel fuel not used to propel the vehicle.

“Carriers who operate in-cab heaters and APUs have greatly reduced their non-propulsion fuel consumption. The 50 percent plateau should easily be attained,” says Laskowski. “The new policy should provide increased advantage for carriers investing in these anti-idling devices.”

CTA says it will now be working with the carrier community and manufacturers to lay the groundwork for a government document that will assist carriers in future refund claims and for non-propulsion claims where idling reduction equipment is not involved.