Highway Use Tax Evasion - Intergovernmental Efforts

Background
The Highway Use Tax Evasion (HUTE) Program provides funding to the Internal Revenue Service (IRS), States, and the District of Columbia to assist them in carrying out intergovernmental fuel excise tax enforcement efforts and funding for training and research to reduce evasion of payment of motor fuel and other highway use taxes. The HUTE Program is codified at 23 United States Code (U.S.C.) 143. Section 1110 of the Fixing America’s Surface Transportation Act, or the FAST Act amended 23 U.S.C. 143 and authorized contract authority funding, not to exceed $4 million per year for Fiscal Years (FY) 2016 – 2020, derived from the Highway Trust Fund for highway use tax evasion projects. The funds are authorized to further enhance compliance with motor fuel and highway use taxes.

Grant Details
The HUTE program will provide total potential awards of up to $3.7 million for eligible intergovernmental enforcement activities. The average number of applicants applying for these funding opportunities has historically ranged from 15 to 18 applications per announcement, with an average of 15 projects selected to receive a HUTE grant.

The anticipated award process would allow for periods of performance to start on the date of obligation through the project end date depending on the type of work being performed. On average, the performance period is about 3 years.

Eligibility Requirements
Eligible applicants are States and the District of Columbia. Multiple States may submit a joint application. The Federal share of the cost of a HUTE discretionary grant shall be 100 percent.

Period of Performance
The HUTE discretionary funds remain available for obligation for a period of three years after the last date of the fiscal year for which the funds are authorized.

Grant Value
$3.7 million for eligible intergovernmental enforcement activities.