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Federal Excise Tax (FET) Rules for Glider Kits

Posted 3:06 PM by

Semi Truck Close Up of Headlight

On Jan. 17, 2014, the Internal Revenue Service released a public memorandum clarifying the federal excise tax (FET) rules regarding glider kits. Previously, vehicles used as glider kits were exempt from FET if the cost of the transaction was 75% or less of the price of a comparable vehicle. 

However, it seems that in most circumstances, glider kits are now considered new manufactured articles under § 4051(a)(1) and would therefore be subject to the 12% tax. The memo details a series of four rebuilds, all of which are stated to be subject to FET.

Read a copy of the memorandum here.

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