Boost Your Bottom Line With Off-Highway Fuel Tax Rebates (Powered By Geofencing)

The transportation industry has faced difficult economic conditions in recent months, with unique dynamics creating significant challenges and, in many cases, leading to mass layoffs and bankruptcies.

The bottom line is that every dollar matters right now. Opportunities to reduce costs or increase revenue are essential to survival.

Those operating in the transportation space are increasingly turning to technology to help identify opportunities to reduce costs or boost revenue. Automated polygon geofencing is proven to improve the bottom line for many reasons, but there’s an emerging use case that’s growing in popularity: Advanced geofencing can help firms secure off-highway fuel tax rebates.

See below for details on how geofencing can help secure these rebates, and contact us to learn more about adding our automated polygon geofencing to your tech stack.

The Unique Challenges of Operating a Fleet in Today’s Landscape

Why has the freight market and transportation industry been so tough recently? The list of driving factors includes:

  • Low spot rates, driven by a significant post-pandemic drop in demand.
  • High operational costs.
  • Labor shortages.
  • Supply chain disruptions.
  • New regulations.

There are finally signs that the so-called “freight recession” is receding and that firms will enjoy more opportunities in the coming months, but margins are still tight for many right now. Securing off-highway fuel tax rebates is one path to reducing operational expenses. Many states offer these rebates, but few organizations have the tracking capabilities to take advantage of them.

Enter automated polygon geofencing.

How Automated Polygon Geofencing Helps You Secure Off-Highway Fuel Tax Rebates

Given the challenging environment in which trucking companies are operating, there’s little time to spend tracking time and miles spent on roadways eligible for tax rebates. That’s where automated polygon geofencing becomes immensely beneficial.

With this technology in place, organizations can geofence specific areas in states where tracking is needed to secure rebates. Rather than relying on traditional geofencing, which does not allow for detailed fencing of specific areas, automated polygon geofencing enables users to create nuanced zones that empower accurate, reliable, and automated monitoring of non-highway usage. Instead of keeping logs manually or estimating usage, organizations can automate the creation of accurate, detailed logs that can be used to document off-highway usage (and secure tax rebates).

Where can automated polygon geofencing assist with these tax rebates? Examples include:

  • New York, where the state “imposes a highway use tax (HUT) on motor carriers operating certain motor vehicles” on public highways.
  • Maine, where organizations can access special fuel and gasoline tax refunds.
  • Nevada, where (similar to Maine) the state allows credit for special fuel used in the operation of motor vehicles off public highways.

Automated polygon geofencing allows you to comply with regulations regarding these taxes and rebates, accurately track usage, and claim any rebates your organization is eligible to receive.

The Benefits of Geofencing for Off-Highway Fuel Tax Rebates

Specific to securing these tax rebates, the primary benefits are:

  • Reduce reliance on manual processes: While some activities may increase revenue or reduce costs, they are less helpful if they are inefficient. Automated polygon geofencing eliminates some manual intervention by automating a significant portion of the process. This gives your team more time to focus on business development, customer service, and other high-value tasks.
  • Increased tracking accuracy: Without automated polygon geofencing, your organization is left to rely on manual efforts, logbooks, and driver manual  documentation.
  • A boost to the bottom line: The most important thing is finding cost savings in this challenging operational environment. Automated polygon geofencing can help you secure tax rebates and give your business breathing room amid the freight recession.

Using geofencing for off-highway fuel tax rebates demonstrates the power of auditable geofences. When compliance needs arise, automated polygon geofencing can help you create an audit trail that captures the details around your operations. Off-highway fuel tax rebates are just one use case where these auditable geofences help organizations ensure compliance.

Get Started With Automated Polygon Geofencing

Getting started with automated polygon geofencing doesn’t mean adding a new and completely separate platform to your tech stack. At Kestrel Insights, we’ve built integrations to leading ELD, track-and-trace, and telematics platforms (like Motive) so that you can leverage the power of advanced geofencing within your existing suite of tools.

If you’re ready to use geofencing to secure tax rebates and unlock a series of other benefits, get in touch with us.