QA 06-17-2026 Answer to Federal Excise Question.docx

This is a Question and Answer document addressing Federal Excise Tax (FET) treatment for solicitation 127EAY26Q0049. The questioner asked whether Federal Excise Tax, if applicable to the offered heavy duty trailers, should be included in the contractor's quoted price or if the procurement is exempt from FET. The government's answer confirms that the United States is exempt from Federal Excise Tax based on FAR 29.203. Specifically, the answer cites two key exemptions: (1) exemption from communications excise tax under 26 U.S.C. 4293 when supplies and services are for exclusive use of the United States, and (2) exemption from the federal highway vehicle users tax under 26 U.S.C. 4483(b), which applies regardless of whether the United States owns or leases the vehicle. This exemption is authorized by Secretarial Authorization from the Department of the Treasury and applies to this acquisition for heavy duty trailers for the Sierra National Forest, Klamath National Forest, and Lassen National Forest.