2023 Highway Use Tax Evasion Enforcement Grant

The purpose of this Notice of Funding Opportunity (NOFO) is to solicit applications for the Federal fiscal years (FY) 2021-2023 Highway Use Tax Evasion (HUTE) grants. The 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 grant funds may be used to expand efforts to enhance motor fuel tax enforcement, supplement motor fuel tax examinations and criminal investigations, develop automated data processing tools to monitor motor fuel production and sales, evaluate and implement registration and reporting requirements for motor fuel taxpayers, reimburse State expenses that supplement existing fuel tax compliance efforts, analyze and implement programs to reduce tax evasion associated with other highway use taxes, support efforts between States and Indian Tribes to address issues relating to State motor fuel taxes, analyze and implement programs to reduce tax evasion associated with foreign imported fuel, and carry out intergovernmental enforcement efforts, including research and training. • The applicant should identify the project’s history, describe any previously incurred costs, and provide documentation of any coordination with other States and agencies. • The applicant should describe the project’s budget in detail, including the plans for covering the full cost of the project from all sources, and identify other Federal funds the applicant is applying for or has been awarded. • The applicant should assess the greatest risks to the project and identify how the project parties will mitigate those risks. • The applicant should address how their project will create good-paying jobs with free and fair choice to join a union, promote investments in high-quality workforce development programs, and change hiring policies and workplace cultures to promote the entry and retention of underrepresented populations.