Section 3. DEFINITION OF

OFF-HIGHWAY VEHICLE

(a) In general . Section 7701(a)(48) provides that a vehicle with certain described features for off-highway transportation is not treated as a highway vehicle. This provision generally is effective on October 22, 2004; however, with respect to the taxes on special fuels imposed by § 4041 and on taxable fuels imposed by § 4081, the provision applies to taxable periods beginning after October 22, 2004.

(b) Revision to regulations . Section 48.4061(a)–1(d)(2)(ii) provides that, for purposes of §§ 4051 and 4481, a vehicle with certain described features for off-highway transportation is not a highway vehicle. Section 48.4041–8(b)(2)(ii) provides a similar exception for purposes of § 4041, § 4081, and the credits, refunds and payments related to § 4081. Sections 48.4041–8(b)(2)(ii) and 48.4061(a)–1(d)(2)(ii) will be revised so that they will not apply with respect to calendar quarters beginning after October 22, 2004.