Wall Street bailout provides excise tax exemption for APU purchasers

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The U.S. government bailout package for Wall Street includes an exemption from the excise tax for auxiliary power units. The exemption would apply to new APUs when they are bought with new trucks.

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 bailout bill was passed by both houses of Congress last week and signed into law by President Bush on Friday, Oct. 3.