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U.S. Congressman Paul Ryan Visits Putzmeister America

(Left) Putzmeister America President & CEO Dave Adams welcomes First District Representative Paul Ryan (R-WI) to the company's Sturtevant, Wisconsin headquarters.

U.S. Congressman Paul Ryan Visits Putzmeister America

Wisconsin Representative discusses fuel allocation

STURTEVANT, Wisconsin (June 6, 2005) – Putzmeister America recently welcomed First District Representative Paul Ryan (R-WI) to its Sturtevant, Wisconsin headquarters. Ryan took the opportunity to tour the facility and discuss an issue close to the heart of his constituents.

“It was a distinct privilege to receive Representative Ryan and to show him the products and employees he continues to support through his efforts on fuel allocation,” says Putzmeister America President & CEO Dave Adams. “It is refreshing to see the commitment of an elected official to the community and to our industry as a whole.”

In October 2004, the mobile machinery excise tax exemption was included in the American Jobs Creation Act signed into law by President Bush. As a result, qualifying mobile machinery is exempt from the three highway excise taxes: retail tax on heavy vehicles, heavy vehicle use tax and the tire tax. The new law also establishes a fuel tax exemption for vehicles traveling 7,500 miles or less.

While, this mileage cap benefits some equipment users, it penalizes those using concrete pumps. Almost all concrete pumps travel in excess of 7,500 miles each year, which nullifies their federal fuel tax exemption. The primary concern is that this type of mobile machinery consumes 70 to 85 percent of its fuel in off-highway job site operations. So, concrete pumpers are paying 100 percent tax on only 15 to 30 percent highway fuel use.

A member of the House Ways and Means Committee, Ryan continues to champion a revision of the language in the current legislation. The revision seeks a partial exemption from federal fuel taxes for machinery consuming more than 70 percent of its fuel in off-road applications. Ryan’s commitment to allocation issues complements those of Putzmeister and other members of the American Concrete Pumping Association (ACPA) and its board who have requested assistance from the Senate Committee on Finance.

“Time will tell the outcome of the work we are all doing to not only help our industry, but also the small, often family-owned concrete pumping companies that use our equipment,” says Adams.

On August 5, 2005, the U.S. Congress passed the Transportation Bill which contained verbiage related to the fuel tax exemption for concrete pumps. A study on the issue will be conducted by the Secretary of the Treasury with a report due no later than January 1, 2007. There is currently language in the Senate to encourage the IRS to revisit the fuel cap and look specifically at the vehicles it affects.