IFTA and IRP: Are they the same?

At some point, we have to admit that IFTA and IRP got us to think. But if you are new to the business, you might be looking for answers regarding this two topics. Let us help you with that in this article.

Getting into the Carrier business, you sure came up with this very same question some time. What could be the difference between International Fuel Tax Agreement (IFTA) and International Registration Plan (IRP)? They seem to be essentially just like the other. That’s why we’re breaking this down for you in this article to help you straighten out the confusion.

 

Things IFTA and IRP have in common

• IFTA and IRP are both a cooperative agreement between the 48 contiguous states in the U.S. and the provinces of Canada

• They are both a must for qualified motor vehicles – motor vehicles weighing more than 26,000 pounds gross vehicle or registered vehicle gross weight; operating in more than one member jurisdiction

• It is both intended to simplify things for the qualifying motor carriers

• You have to both renew IFTA and IRP annually in most states

• Both IFTA and IRP registration is done in your base jurisdiction

 

Things that set IFTA and IRP apart

• IFTA is purposely for reporting fuel used by motor carriers and its taxation incurred in more than one member jurisdiction; while IRP is intended for licensing motor carriers operating and running in more than one member jurisdiction

• While IFTA and IRP need to be renewed yearly in most states, IFTA needs quarterly filing of reports documenting mileage and fuel purchased in every state for your Fuel Tax Report

• After opening your account, for IFTA you will receive decals/stickers for your power unit and an IFTA license; for IRP you will receive Apportioned Plates for your power unit and an Apportioned Cab Card that contains the list of states you registered your vehicle to operate in.

 

Now that we are able to identify what makes them alike and not, we are now sure of what these two different cooperative programs’ purpose serves. And finally, we can confirm that they are actually not the same despite all the common grounds that they have.

 

Need to know more about IRP? This article might help you.