Tax Rebates and Exemptions

Below you will find several different forms that you may use to file for fuel tax credits or rebate payments. Generally the filing is done annually along with your company's income taxes using Form 4136 (for tax credits), but you can also file annually on fuel and any other applicable excise taxes (for rebate payments) using Form 8849 along with the appropriate attachment (schedule 1 in your case). If you want to file quarterly you can use Form 720.

As a reminder, effective January 1, 2005, the ability of bus operators to use dyed diesel fuel and pay the $0.074-per-gallon backup tax is eliminated. As under prior law, an income tax credit or payment of $0.17 per gallon is allowable if undyed diesel fuel (which is normally taxed at $0.244 per gallon) or undyed kerosene is used for this purpose. In addition, if the ultimate purchaser of undyed diesel fuel or undyed kerosene used in a bus waives its right to an income tax credit or a payment (waiver form), and assigns such right to the registered ultimate vendor, then the ultimate vendor, and not the ultimate purchaser, may claim a payment or an income tax credit. IRS Publication 510 is also included and has all of the necessary guidance for answering most questions regarding fuel taxes on diesel fuel.

Related Resources
Publication 510 [1] 2007 Fuel Tax Credit Form [2] Quarterly Excise Tax Refund Form. [3] Excise Tax Refund Form [4] Excise Tax Refund Form Schedule 1 Attachment [5]

Contact:

Norm Littler
Vice President Regulatory and Industry Affairs
202-218-7246