Energy Marketers of America weekly update on important national industry news

June 21, 2024

2024-2025 Federal Heavy Highway Vehicle Use Tax Due August 31 for Vehicles Used on Road After July 1, 2024
Mark S. Morgan, EMA Regulatory Counsel: markmorgan@verizon.net

The 2024 Heavy Highway Vehicle Use (HHVU) tax reporting period runs from July 1, 2024 to June 30, 2025. The HHVU tax is paid on each commercial motor vehicle with a gross vehicle weight of 55,000 pounds or greater; and travels 5,000 miles or more per year. The HHVU applies to most petroleum cargo tank vehicles and transports. Once the HHVU tax is filed and paid, the IRS will return IRS Form 2290 with a “paid” stamp.

What’s New with 2290 Filings:

• IMPORTANT! The IRS reinstated the use of debit card and credit card payment methods for the HHVU tax that it suspended during the Covid-19 pandemic. Form 2290 filers are able to pay their Form 2290 tax liability with either a credit, debit card, check or by EFTPS (see “How to Pay” below).

Filing Form:

• For the current tax period July 1, 2024 to June 30, 2025 use IRS Form 2290 (Rev. July 2024) and IRS Form 2290 Instructions (Rev- July 2024).
• IMPORTANT! Any amount due from the previous 2023-2024 filing period must be filed on the IRS Form 2290 (Rev. July 2023) and IRS Form 2290 Instructions (Rev. July 2023) .
• IMPORTANT! When clicking on each IRS link above, the forms and instructions will not immediately appear on your screen. You must scroll down until the form and/or instructions appear.

Filing Deadlines:

The filing deadline for Form 2290 is based on the month the taxpayer first uses the taxable vehicle on public highways during the reporting period.

• For vehicles first used on a public highway in the month of July 2024, file Form 2290 between July 1 and August 31, 2024.
• For vehicles first used on a public highway after July 31, 2024, file Form 2290 by the last day of the month following the month in which you first used the vehicle on a public highway. The tax for the current filing season is prorated for vehicles first used on a public highway after July.

Filing Methods:

• Electronic Filing: Form 2290 may be filed electronically. Taxpayers must file electronically if reporting 25 or more vehicles on Form 2290.
• Use EMA's exclusive endorsement agreement with ThinkTrade, an IRS authorized e-filing service provider and a BBB accredited company with A+ rating. ThinkTrade offers EMA member companies a 15 percent discount off ThinkTrade’s e-filing services through a dedicated landing page to prepare, file and pay federal excise tax returns on IRS Forms 720, 8849 and 2290.
• For more information about ThinkTrade and EMA’s landing page to file taxes, please visit https://taxexcise.com/ema/

IMPORTANT! All taxpayers are encouraged to file electronically. Electronic filing generally allows for quicker processing of your return. A stamped Schedule 1 can be available within minutes after filing and acceptance by the IRS.

• Paper Filing: Taxpayers may file a paper copy of Form 2290 via the U.S. Postal Service. See Form 2290 Instructions for the correct mailing address. Expect to receive a stamped Schedule 1 returned within 6 weeks after filing.

Calculating Payment Amount:

• The per vehicle tax payment amount of the HHVU tax is calculated based on gross vehicle weight (GVW) and the month the vehicle is first used during the reporting year. The minimum annual HHVU weight tax is $100 for vehicles in use between July 1, 2024 and June 30, 2025 having a GVW of 55,000 pounds. This amount increases to a maximum $550 for vehicles with a GVW over 75,000 pounds. See “Tax Computation” table on IRS Form 2290 (Rev. July 2024).
• The per vehicle tax payment amount for the current filing period is prorated for vehicles first used on a public highway after July 1. For vehicles not in use during July 2024, the applicable annual HHVU weight tax rate is reduced by 1/12 for each calendar month after July 31 until the vehicle is first used. For example, the annual HHVU tax on a vehicle first used in October of the 2024-2025 reporting year is reduced by 3/12ths of the annual rate based on GVW because it was not in use for the first three months of the reporting year. The monthly proration calculations are fully explained on IRS Form 2290 Instructions (Rev- July 2024).

How to Pay:

There are four methods to pay the tax.

• Electronic funds withdrawal (direct debit) if filing electronically. Electronic Funds Withdrawal.
• Electronic Federal Tax Payment System (EFTPS). Payment by EFTPS.
• Credit or debit card payment.
• Check or money order using the payment voucher.

The HHVU tax is due when Form 2290 is filed.

Important Reminders:

• Filers must complete pages 1 and 2 of Form 2290 along with both pages of Schedule 1.
• Filers must have an established employer identification number (EIN) to file Form 2290. Click here to obtain an EIN online.

Schedule 1 Copies for Filed Forms 2290:

• To receive a copy of a current stamped Schedule 1, Form 2290 must be filed first and the HHVU tax paid. Electronic filers will receive their stamped Schedule 1 via email instantaneously. Paper filers will receive their stamped Schedule 1 via the U.S. Postal Service within six weeks of filing.

For additional information, contact the IRS Form 2290 Call Center: 1 (866) 699-4096, Monday–Friday, 8:00 a.m. to 6:00 p.m., Eastern time.

Energy Marketers of America Sues EPA Over Heavy Trucking Electrification Mandate

On Tuesday, several organizations—including EMA, American Fuel & Petrochemical Manufacturers (AFPM), California Asphalt Pavement Association (CalAPA), California Manufacturers & Technology Association (CMTA), Consumer Energy Alliance (CEA), International Association of Machinists and Aerospace Workers, Louisiana Mid-Continent Oil & Gas Association (LMOGA), National Association of Convenience Stores (NACS), and Western States Petroleum Association (WSPA)—filed a petition with the DC Circuit Court to sue the U.S. Environmental Protection Agency (EPA) over its March final rule that imposes an electrification mandate on the U.S. heavy trucking sector.

The heavy-duty trucking lawsuit follows last week’s challenge to EPA’s light- and medium-duty vehicle emissions standards for model years 2027-2032. EMA, along with several business groups and States, have asked the courts to review EPA’s prior tailpipe emissions standards for model year 2025 and 2026 vehicles and the Agency’s reinstatement of California’s Clean Air Act waiver to issue climate-based vehicle emissions standards. Whether California can blaze its own trail on combatting climate change also implicates the “major questions doctrine,” which holds that courts should not defer to agencies on questions of “vast economic or political significance” without explicit Congressional authority to do so. The appeals court will decide whether the Clean Air Act authorized California to regulate vehicle emissions to target a phenomenon like climate change which has a global cause and effect. Additionally, EMA joined an amicus curiae challenge to the National Highway Traffic Safety Administration’s fuel-economy standards. Simply put, the Biden Administration’s final rules are an electrification mandate in disguise.

Even though automakers are committed to boosting EVs, many of them, as well as members on Capitol Hill, are raising questions about the Biden Administration’s new approach, from securing critical materials needed for EV batteries, to the availability of EV charging stations and the ability of electric grids to meet power needs. China’s stranglehold on the critical minerals industry and mining in Africa is a major concern. Additionally, given that heavy duty EVs weigh more than the internal combustion engine (ICE), there is a concern that more trips will be needed to carry products which will add more stress to our roads and bridges and likely result in more traffic deaths.

“Unfortunately, President Biden’s aggressive attempt to electrify the transportation sector will limit consumer choice on cleaner greener ICEs, increase Americans’ utility bills to subsidize a massive expansion of the electric grid for EV charging, and threaten the viability and jobs of small business energy marketers around the country, whether they deliver gasoline and diesel or renewable fuels like ethanol, biodiesel and renewable diesel,” said EMA President Rob Underwood.

FMCSA Holding Virtual Meetings Seeking Public Input on Possible Changes to Motor Carrier Fitness Determinations

The Federal Motor Carrier Safety Administration (FMCSA) will host two virtual public meetings pertaining to development of an updated methodology to determine when a motor carrier is unfit to operate commercial motor vehicles in interstate commerce. The purpose of the meetings is to gather public input on issues relating to possible changes to the current motor carrier Safety Fitness Determination (SFD) including the three-tiered rating system (Satisfactory, Unsatisfactory and Conditional).

The virtual sessions will allow members of the public to make brief statements to the FMCSA panel. FMCSA is considering changing the three-tiered rating system to a single rating when a motor carrier is determined to be “unfit” to continue operations. The FMCSA is also considering using inspection data and driver safety records to factor into SFD; revising the list of safety violations used to calculate the rating and adjusting the weight allocated to particular violations, including increasing the weight for unsafe driving violations. The changes the FMCSA seeks input on could make it easier for motor carriers to be determined unfit for interstate operations. There will be two FMCSA public listening sessions on the SFD; 6/25/24 from 2:00 pm to 3:30 pm eastern time and on 7/31/24 from 2:00 pm to 3:30 pm eastern time. To register for either of the meetings, sign up at:

• Registration for the June 25, 2024 session must be completed here.
• Registration for the July 31, 2024 session must be completed here.

Special EMA Members Code for NACS Show 2024 Registration

The NACS Show is returning to Las Vegas this October, and it’s time to start planning.
  

Using this code provides EMA with $100 for every retailer or jobber paid registration at any rate. EMA encourages EMA state execs to promote and share with your state association’s member companies. Please see attached flyer. 

**Please note that EMA State Execs are comped for NACS Show registration, and this link will be sent directly to them in the near future from NACS. Additionally, the NACS Show registration is separate from EMA’s Fall Meeting registration.

Again, the EMA NACS Show Registration Code is: EMANS2024 and CLICK HERE for Full Instructions to register.

Questions registering? Contact NACS Show registration customer service at nacs@maritz.com or 469-513-9489, Monday-Friday, 9:00 a.m. – 5:00 p.m

Federated Insurance®: 40 Percent of Businesses Never Reopen Following a Disaster 

Severe weather and natural disasters continue to occur regularly across the United States. The aftermath can be devastating, leaving businesses damaged or destroyed. In fact, 40 percent of those never reopen their doors again. This summer, Federated Insurance® is reinforcing the message that you can’t control the weather, or always prevent disasters, but you can plan ahead to increase the chances of your business recovering.

On Tuesday, June 11, Federated Insurance sent member clients an informative email highlighting the regionally specific severe weather and natural disasters that could impact them. The email is designed to connect member clients with:

• A Hurricane Preparedness and Recovery Plan
• A Tornado Preparedness Plan
• A Wildfire Safety Zone Guide
• Additional severe weather and disaster training resources are located in mySHIELD®, Federated’s personalized and customizable source for risk management resources available to clients.

Federated® is encouraging member clients to take action today with the help of disaster planning and recovery risk management resources. To discuss your unique disaster planning needs, reach out to your local Federated Insurance marketing representative.

Please always feel free to contact your Federated regional representative or EMA’s new National Account Executive Patrick Cunningham at 507.455.8935 for any additional information or risk management questions. Federated is a Partner in EMA’s Board of Directors Council.

At Federated Insurance, It’s Our Business to Protect Yours®

Weekend Reads

Nice EV You Got There—Can You Afford to Insure It? | Wall Street Journal

Electric vehicles emerge as flash point in 2024 election | The Washington Post

Zyn Nicotine Pouch Maker Halts Sales on Its Website | The Wall Street Journal

Why Disaster Recovery is No Longer Optional for Today’s Businesses

Member Services Benefit with Dell Technologies
Energy Marketers of America (EMA) Announces Member Service Benefit with Dell Technologies

Earlier this year, Energy Marketers of America announced that Dell Technologies, maker of laptops, workstations, monitors, servers, storage solutions and more, joined its Corporate Partner Program as a Gold Corporate Partner and a Member Services Vendor.
EMA members save up to an additional 10 percent off, plus other eligible discounts. Additionally, member savings can be applied to promotional pricing such as Black Friday, Cyber Monday, and Back-to-School specials as well. For assistance in placing a small business order, please contact Sarah Weathers or 800.757.8442.