OMB No. 1545-0162
com 4136 Computation of Credit for Federal Tax on Fuels r 71989
Department of the Treasury (And Credit for Purchase of Diesel-Powered Highway Vehicles)
Internal Rovorius Sernee > Attach this form to your income tax return. Attachment 9
Name (as shown on your income tax return) ‘Social security or employer identification number
Type of Use gure | yee | qumyesemy
1 Diesel-powered highway vehicles purchased this year (See instructions.) $
2 Nonhighway:
a Farm (for farming purposes): 7]
()) Gasoline, gasoline/alcohol mixture (gasohol) . .03/.0333/.09* Mf;
(ii) Diesel fuel, diesel /alcohol mixture . .09/.10/.15* |$
(iii) Special motor fuels, special fuels /alcohol mixture : .03/.045/.09*
b Commercial fishing vessels (See instructions.):
(i) Gasoline, gasoline/alcohol mixture (gasohol) . 03/.0333/.09* Mi
(ii) Diesel fuel, diesel/alcohol mixture . .09/.10/.15* |$
(iii) Special motor fuels, special fuels alcohol mixture .03/.045/.09*
c¢ Off-highway business use (specify) ...
() Gasoline, gasoline alcohol mixture (gasohol) .03/.0333/.09* TM 7
(ii) Diesel fuel, diesel/alcohol mixture . .09/.10/.15* |$
(iii) Special motor fuels, special fuels/alcohol mixture .03/.045/.09*
3a Intercity, local, and school buses (See instructions.) . 103/.0333/.09/.12/.15* Uy
b Qualified local buses (See instructions.) . 15 $
4 Gasoline and diesel fuel used for certain nontaxable f purposes . -03/.09/.10/.15*|$
5  Gasoline/alcohol mixture (gasohol) . .0566 $
6a Qualified methanol and ethanol .06 Us
b Diesel/alcohol mixture . .05 $
¢ Special motor fuels/alcohol mixture .0566
7 Leaking underground storage tank (LUST) taxes (Gee instructions.) .001/.0011/.0005* | $
8 Farm aviation (for farming purposes) . .03/.09/.12/.14*_|$
9 Other aviation (See instructions.) : .03/,09/.12/.14* | $
10 Total income tax credit claimed (add lines 1 through 9). Enter here and on Form 1040, line 61; Form 1120, line
32g; Form 1120-A, line 28g; Form 1120S, line 23b; Form 1041, line 24g; or the proper line of other returns .

* Use rate paid or allowable rate if less.

General Instructions

Paperwork Reduction Act Notice.—We ask
for this information to carry out the Internal
Revenue laws of the United States. We need it
to ensure that taxpayers are complying with
these laws and to allow us to figure and collect
the right amount of tax. You are required to
give us this information.

The time needed to complete and file this
form will vary depending on individual
circumstances. The estimated average time is:

Recordkeeping . . Thrs., 25 min.
Learning about the

law or the form . 6 min.
Preparing and sending

the form to IRS. 13 min.

If you have comments concerning the
accuracy of these time estimates or
suggestions for making this form more simple,
we would be happy to hear from you. You can
write to either IRS or the Office of
Management and Budget at the addresses
listed in the instructions of the tax return with
which this form is filed.

Purpose of Form.—Form 4136 is used by
individuals, estates, trusts, or corporations to
claim credit for Federal excise tax paid on
fuels used for certain nontaxable or reduced
rate purposes, and to claim the credit for

diesel-powered highway vehicles.
(Partnerships cannot file this form; instead,
they must attach a statement to Form 1065,
U.S. Partnership Return of Income, showing
how many gallons of the fuels are allocated to
each partner, the types of use, and the
applicable tax rates.)

Which Fuels Qualify for the Credit.—Fuels
eligible for the credit include gasoline (which
includes gasoline blend stocks and additives),
gasohol, diesel fuel, aviation fuel including
kerosene, avgas, methanol, ethanol, benzol,
naphtha, liquefied petroleum gas, casinghead

and natural gasoline, and other taxable liquids.

These fuels qualify for the credit (1) if they are
used for the various purposes described in the
line-by-line instructions, (2) if the purchase
price of the fuels includes the tax, and (3) if
you have not requested a refund of the tax.
Fuels that are lost through spillage, accident,
or shrinkage do not qualify for credit or refund.
Claiming a Refund Instead of a Credit.—
Rather than waiting until you file your income
tax return to claim credit for the tax paid, you
may be able to file a quarterly claim for the
first three quarters of the year on Form 843,
Claim. See Pub. 378, Fuel Tax Credits and
Refunds, for more information on quarterly
refund claims.

Including Credit in Income.—The amount of
the credit, except the amount on line 1, must
be included in your gross income if you

claimed the taxes paid as an expense
deduction that reduced your income tax
liability. See the instructions for Line 1,
Diesel-Powered Vehicles, for information on
basis reduction. Also, see Pub. 378 for more
information.

Additional Information on Fuel Credits.—
Pub. 225, Farmer's Tax Guide; Pub. 595, Tax
Guide for Commercial Fishermen; Pub. 378,
Fuel Tax Credits and Refunds; and Pub. 510,
Excise Taxes for 1990; all contain additional
information on the fuel tax credit. They are
available from many IRS offices and the IRS
forms distribution center for your area.

Line-by-Line Instructions

Line 1—Diesel-Powered Vehicles. —If you
bought a diesel-powered highway vehicle
during the year for a use other than resale and
you are the first purchaser, you may claim a
‘one-time credit of $102 for an automobile and
$198 for a light truck or van. The vehicle must
be a diesel-powered highway vehicle that has
at least four wheels, has a gross vehicle weight
rating of 10,000 pounds or less, and is
registered for highway use in the U.S. under
the laws of any state. Enter the credit on line
1, If you bought more than one vehicle, enter
the total credits on line 1. If you claim the
credit for diesel-powered vehicles, you must
reduce the basis of the vehicle by the credit
claimed.

Form 4136 (1989)


Form 4136 (1989)

Page 2

Line 2a—Farm Use.—You may claim a
credit for tax paid on gasoline, diesel fuel, and
special motor fuels (or any of these mixed with
alcohol) used on a farm for farming purposes
in the U.S. Such farms include those that raise
stock, dairy, poultry, or fur-bearing animals;
and truck farms, plantations, ranches,
nurseries, ranges, greenhouses, and orchards.
See Pub. 225 for more information on who
may claim a credit for farming purposes.

The credit amounts are as follows. Also, see
Line 7, later.

Line 2a(i)—9 cents a gallon for gasoline;

3 cents a gallon for gasohol; 3% cents
($.0333) a gallon for gasoline purchased for
mixing with alcohol.

Line 2a(ii)—15 cents a gallon for diesel fuel;
9 cents a gallon for diesel fuel mixed with
alcohol; 10 cents a gallon for diesel fuel
purchased for mixing with alcohol.

Line 2a(iii)—9 cents a gallon for special
motor fuels; 3 cents a gallon for special fuels
mixed with alcohol; 9 cents or 4% cents
(whichever paid) a gallon if 85% of the fuel
consists of alcohol produced from natural gas;
3 cents a gallon for methanol and ethanol.

Line 2b>—Commercial Fishing Vessels. —
You may claim a credit for tax paid on
gasoline, gasohol, diesel fuel, diesel fuel mixed
with alcohol, special motor fuels, and special
fuels mixed with alcohol used in a commercial
fishing vessel. A commercial fishing vessel is
one used in the fishing or whaling business
only for catching shrimp and other aquatic life
for sale commercially as bait, or on specific
trips only for catching fish, shrimp, or other
aquatic life to be sold commercially.

The credit amounts are as follows. Also, see
Line 7, later.

Line 2b(i)—9 cents a gallon for gasoline; 3
cents a gallon for gasohol; 3% cents ($.0333)
a gallon for gasoline purchased for mixing with
alcohol.

Line 2b(ii)—15 cents a gallon for diesel fuel;
9 cents a gallon for diesel fuel mixed with
alcohol; 10 cents a gallon for diesel fuel
purchased for mixing with alcohol.

Line 2b(iii)—9 cents a gallon for special
motor fuels; 3 cents a gallon for special fuels
mixed with alcohol; 9 cents or 44 cents
(whichever paid) a gallon if 85% of the fuel
consists of alcohol produced from natural gas;
3 cents a gallon for methanol and ethanol.

Line 2c-—Off-Highway Business Use.—You
may claim a credit for tax paid on fuels used
for any off-highway business purpose. Off-
highway business use does not include fuel
used (1) in a motorboat that is nota
commercial fishing vessel, or (2) ina highway
vehicle that either must be registered for
highway use or is owned by the U.S. and used
on the highway. Enter the specific off-highway
business purpose for which you used the fuel
in the entry space on line 2c.

The credit amounts are as follows. Also, see
Line 7, later.

Line 2c(i)—9 cents a gallon for gasoline; 3
cents a gallon for gasohol; 34 cents ($.0333)
agatlon for gasoline purchased for mixing with
alcohol.

Line 2c(ii)—15 cents a gallon for diesel fuel;
9 cents a gallon for diesel fuel mixed with
alcohol; 10 cents a gallon for diesel fuel
purchased for mixing with alcohol.

Line 2c(iii)—9 cents a gallon for special
motor fuels; 3 cents a gallon for special fuels
mixed with alcohol; 9 cents or 4¥ cents
(whichever paid) a gallon if 85% of the fuel
consists of alcohol produced from natural gas;
3 cents a gallon for methanol and ethanol.

Line 3a—Intercity, Local, and School
Buses.—You may claim a credit for tax paid on
gasoline, gasohol, diesel fuel, and special
motor fuels if you are the ultimate purchaser,
and the fuel is used in a bus that transports the
general public for a fee, or students and school
employees. If the bus is an intercity or local bus
and runs on nonscheduled irregular routes, you
may claim the credit only if the bus seats at
least 20 adults, not including the driver.

The credit amounts are 9 cents a gallon for
gasoline and special motor fuels; 3 cents a
gallon for gasohol; 3¥3 cents ($.0333) a gallon
for gasoline purchased for mixing with alcohol;
12 cents a gallon for diesel fuel used in
intercity and local buses; and 15 cents a gallon
for diesel fuel used in school buses. Also, see
Line 7, later.

Line 3b—Qualified Local Buses.—A
qualified local bus is any local bus that seats at
least 20 adults (not including the driver), that
transports the general public along regular
scheduled routes, and that is under contract
to, or receives more than a nominal subsidy
from, any state or local government to furnish
such transportation. You may claim a credit of
15 cents a gallon for tax paid on diesel fuel
used in a qualified local bus. Also, see Line 7,
later.

Line 4—Gasoline and Diesel Fuel Used for
Nontaxable Purposes.—You may claim a
credit for tax paid on gasoline, gasohol, diesel
fuel, or diesel/alcohol mixture that is exported,
used as supplies for vessels or aircraft, or used
for a nontaxable purpose. Diesel fuel used ina
boat is a nontaxable use. You may also claima
credit for tax paid (9 cents a gallon) on blend
stocks and additives not used to produce
gasoline, and tax paid on diesel fuel used in
trains. The credit is 9 cents a gallon for
gasoline and 3 cents a gallon for gasohol. The
credit is 15 cents a gallon for diesel fuel, 9
cents a gallon for diesel/ alcohol mixture, and
10 cents a gallon for diesel fuel purchased for
mixing with alcohol. Also, see Line 7, later.
Line 5—Gasoline/Alcohol Mixture.—You
may claim a credit for tax paid on gasoline that
you use to produce a gasoline/alcohol mixture
(gasohol) if the mixture is at least 10%
alcohol, and the mixture was sold or used in
your trade or business. The credit is 5.66
cents ($.0566) a gallon for gasoline used in
the mixture.

Line 6a—Qualified Methanol and
Ethanol.— These are liquid fuels, 85% of
which are alcohol produced other than from
petroleum or natural gas. If you paid tax of 9
cents a gallon on these fuels, you may claim a
credit of 6 cents a gallon.

Line 6b—Diesel/Alcohol Mixture. —You
may claim a credit for tax paid on diesel fuel
that is later used in a mixture of diesel fuel and
alcohol if the mixture is at least 10% alcohol
and the mixture was sold or used in your trade
or business. The credit is 5 cents a gallon for
diesel fuel used in the mixture.

Line 6c—Special Fuels/Alcohol Mixture.—
You may claim a credit for tax paid on special
motor fuels that are later mixed with alcohol if
the mixture is at least 10% alcohol and the
mixture was sold or used in your trade or
business. The credit is 5.66 cents ($.0566) a
gallon for special fuels used in the mixture.

Line 7—Leaking Underground Storage
Tank (LUST) Taxes.—You may claim a credit

f “40 of 1 cent ($.001) a gallon for tax paid
on gasoline or gasohol used for off-highway
business use; used in intercity, local, or school
buses; on a farm or in farming aviation; in
commercial fishing vessels; and in helicopter
aviation use described below.

You may also claim a credit for tax paid on
diesel fuel and special motor fuels for use ona
farm, in commercial fishing vessels, in
qualified local buses and school buses, and in
off-highway use. The credit is /i0 of 1 cent
($.001) for diesel fuel and special motor fuels
and 1/20 of 1 cent ($.0005) for qualified
methanol and ethanol.

If you purchased any fuel for mixing with
alcohol, the credit is /% of 1 cent ($.0011)a
gallon.

Lines 8 and 9—Fuel Used in Aviation.—You
may claim a credit for fuel (including an
alcohol mixture) used in an aircraft on a farm
for farming purposes, or used for commercial
aviation, or certain helicopter and aircraft
museum uses. Commercial aviation is the
use of an aircraft in a business of carrying
people or property by air for pay. See Pub. 510
for more information on fuels used in
commercial aviation.

You may claim a credit for gasoline (avgas)
used for these purposes at 9 or 12 cents a
gallon whichever was paid. The credit is 3
cents a gallon for gasohol and 14 cents a
gallon for aviation fuel used for these
purposes. Also, see Line 7, above.

Helicopter Aviation Use.—The credit
applies to fuel used in helicopters to transport
individuals, equipment, or supplies to explore
for, develop, or remove hard minerals, oil, or
gas; or to plant, cultivate, cut, transport or
care for trees (including logging); or to
provide emergency medical service. To
qualify, the helicopter may not take off from,
or land at, a facility eligible for assistance
under the Airport and Airway Development
Act of 1970, or otherwise use services
provided under the Airport and Airway
Improvement Act of 1982.

Line 10—Total Income Tax Credit.—Add
the amount for each credit and enter the total
on line 10. Also, enter the total credit on the
proper line of your income tax return.