Every heavy vehicle owner must file Form 2290. If you own an agricultural business and have agricultural vehicles, the IRS offers a way to reduce your Form 2290 taxes through farm exemptions.

By meeting specific eligibility criteria and submitting the required documentation, you can qualify for agriculture vehicle exemptions. Additionally, agricultural vehicles are taxed less than other commercial vehicles.

What is an agricultural vehicle?

An agricultural vehicle is a vehicle used exclusively for farming purposes. These vehicles are typically registered as farming vehicles, but it’s not required for them to have a special tag or license plate to be considered agricultural vehicles.  

The below categories covered under agriculture vehicles: 

1. Transportation of Agricultural Goods: Moving horticultural crops, livestock, fertilizer, poultry, seeds, bees, animals, and wildlife to or from a farm.

2. Crop Cultivation: Activities such as working the ground, planting seeds, and growing edible plants.

3. Animal Husbandry: Raising animals for milk, meat, or other agricultural products.

These activities are all considered farming purposes and are integral to the agricultural industry.

Form 2290 Agriculture Vehicle Exemption:

An agricultural vehicle may qualify for an exemption from filing Form 2290 under certain conditions:

• Mileage Limit: If your agricultural vehicle has not exceeded 7,500 miles during the tax period, it is eligible for exemption.

• Design: The vehicle must be specifically designed for agricultural use, such as tractors, combines, or harvesters.

• Registration: The vehicle must be registered as an agricultural vehicle with your state's Department of Motor Vehicles (DMV).

• Usage: At least 50% of the vehicle's mileage must be dedicated to farming purposes, including transporting agricultural products, equipment, or supplies to or from a farm, or between farms.

When is your agricultural vehicle due for Form 2290?

Your agricultural vehicle's Form 2290 is due on the last day of the month following the month in which the vehicle was first used on public highways. This deadline applies to all including Form 2290 Suspended Vehicles. To stay compliant with IRS regulations and avoid unnecessary penalties, it’s important to file your tax on time and before the Form 2290 due date. Timely filing ensures that you avoid any additional costs associated with late payments.

WRAP:

After reading this blog, you will be able to determine whether your agricultural vehicle qualifies for a Form 2290 exemption. If you're ready to file, you can easily complete your Form 2290 through our IRS-approved online portal.