Computation of Credit for Federal Tax on 

Gasoline, Special Fuels, and Lubricating Oil

Form

Department of the Treasury

Internal Revenue Service Attach this form to your income tax return.

Name (as shown on your income tax return) Identifying number

Gasoline, Diesel Fuel 

and Special Motor Fuels Part I Lubricating Oil

Type of Use

(A) (B) (C) (D) (E) (F)

Nonhighway:

a. Farm (for farming purposes)

----------------------

$

b. Motorboat

c. Other (specify)

Local transit system. (See instruction D.3.)

Aircraft

Totals $ $

Part II Aviation Fuels

Fuels Other Than Gasoline 

(Example, Jet Fuel) 

Type of Use Number of Gallons Used

(A) (B) (C) (D)

a. Farm (for farming purposes) $

6 Total $

7 Total income tax credit claimed (sum of line 4, columns (C) and (F) and line 6, column (D)) $

* Tax Rate (per gallon used)

Type of Use Diesel Fuel and Special Motor Fuel

Farm (farming purposes) 4¢ 2¢ or 4¢ whatever paid 4¢ or 7¢ whatever paid

Other 2¢ 2¢ or 4¢ whatever paid

Aviation (only applicable to commercial use as defined in 

instruction E.4.(d)) 4¢ or 7¢ whatever paid

Instructions

(Continued on back)

Form 4136 (1976)

Number of

Gallons

Used

Rate of

Tax

Column (A)

Multiplied by

Column (B)

Number of

Gallons

Used

Rate of

Tax

Column (D)

Multiplied by

Column (E)

1

2

3

4

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----------------------

----------------------

----------------------

----------------------

.02

.04

.02

.02

.04

.02

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------------------------------------------

 . . . . . . . . . . . . . . . . . . . . 

 . . . . . . . . . . . . . . . . . . . . 

 . . . . . . . . . . 

 . . . . . . . . 

. . . *

*

----------------------

----------------------

----------------------

----------------------

---------------------- ----------------------

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.06

.06

.06

.06

$

Aviation (only applicable to

commercial use as defined in 

instruction E.4.(d))

5

b.

Gasoline

Number of Gallons Used

Rate of

Tax

Column (A) or (B)

Multiplied by

Column (C)

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---------------------------------

---------------------------------

---------------------------------

----------------------------------

----------------------------------

.07

.04

.07

.04

.07

.07

*

*

 . . . . . 

 . . 

Gasoline

(Nonaviation

use)

Aviation Fuel

Gasoline

(Section references are to the Internal Revenue 

Code unless otherwise specified)

ment should show the allocation among the 

partners of the gallons used of gasoline, special 

fuels, and lubricating oil. The statement should 

also be subdivided according to types of use, as 

shown in the form above. A. Who May File.—Any Individual, estate, trust, 

or corporation which claims credit for Federal 

excise tax on the gallons used of gasoline, 

special fuels, and lubricating oil must file this 

form and attach it to the income tax return.

A partnership need not file this form because 

the partners claim the credit for Federal excise 

tax on gasoline, special fuels, and lubricating oil 

used. However, a partnership must attach a 

statement to its return, Form 1065. The state- 

 

B. Quarterly Tax Refund of $1,000 or More.— 

If the credit is at least $1,000 for any fuel 

category or lubricating oil in any of the first three 

quarters of your taxable year, you may file a 

refund claim, Form 843, for tax during the 

quarter on: (a) gasoline used (except, on a farm 

for farming purposes), (b) lubricating oil used, or 

(c) special fuels used (except on farm for 

farming purposes). However, you must file the 

 

claim for for any quarter before the end of the 

next quarter. The claim for gasoline, special 

fuels, and lubricating oil should provide separate 

computations. You may use this form for your 

computation and attach it to your Form 843.

C. What Lubricating Oil to Include.—You may 

claim an income tax credit for lubricating oil 

(other than cutting oils and used oil) that is not 

used in a highway motor vehicle. Cutting oils 

are oils sold for use on metals in cutting and 

machining operators, such as forging, drawing, 

rolling, shearing, punching, and stamping. Uses 

of lubricating oil, other than in a highway motor 

 

 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
vehicle which, (1) when used is registered or 

required to be registered for highway use under 

the laws of any State, the District of Columbia, 

or a foreign country, or (2) is a highway vehicle 

owned by the United States, and used on the 

highway.

vehicle, include the oiling of plant machinery 

and the lubricating of vehicles, other than 

highway motor vehicles, such as aircraft, 

bulldozers, power shovels, or farm tractors.

reduce the credit claimed by the tax, imposed 

by section 4041, applicable to the actual use.

Instructions (Continued)

Do not include oil (a) used in a highway 

motor vehicle, such as a truck, even if it is 

operated off the highway, (b) sold free of the 

Federal excise tax on lubricating oil, such as 

transformer or insulating oil, certain motor fuel 

additives, crude neat's-foot oil, castor oil, or oils 

purchased excise-tax free by use of an 

exemption certificate, or (c) for which you have 

claimed a refund on a Form 843 filed on time for 

any of the first three quarters of your taxable 

year. (See Instruction B.)

D. What Gasoline to Include.

1. Farm Use.—You may claim an income tax 

credit for Federal excise tax on gasoline used 

for farming purposes on a farm that is a trade or 

business located in the United States.

The term “farm” includes stock, dairy, 

poultry, fruit, fur-bearing animal, and truck farm; 

plantations, ranches, nurseries, ranges, 

greenhouses, or other similar structures used 

primarily for the raising of agricultural or 

horticultural commodities; and orchards.

Gasoline is considered used for farming 

purposes only if the farm's owner, tenant, or 

operator uses it in connection with—

(a) cultivating the soil, or raising or 

harvesting any agricultural or horticultural 

commodity, including the raising, shearing, 

feeding, caring for, training and management of 

livestock, bees, poultry, fur-bearing animals and 

wildlife. If a person other than the owner, tenant, 

or operator of the farm (for example, a custom 

operator) uses the gasoline, the owner, tenant, 

or operator is treated as the user and ultimate 

purchaser of the gasoline;

(b) handling, drying, packing, grading, or 

storing any agricultural or horticultural 

commodity in its unmanufactured state, if, 

during the period for which the claim is filed, the 

owner, tenant, or operator produced more than 

half the commodity treated;

(c) planting, cultivating, caring for, or cutting 

trees, or preparing (other than milling) trees for 

market, incidental to farming operations; or

(d) operating, managing, conserving, 

improving, or maintaining the farm and its tools 

and equipment.

Do not include gasoline used (1) off the farm, 

such as on the highway to transport livestock, 

feed, crops, or equipment; (2) in processing, 

packaging, freezing, or canning operations; (3) 

for personal or other nonfarming purposes; or 

(4) on the farm of another person, even though 

used for farming purposes.

Often a vehicle will be used both on the farm 

for farming purposes and for nonfarming 

purposes. In such a case, give a breakdown of 

the total gallons used, that is, show the gallons 

used on the farm for farming purposes and the 

gallons used for non-farming purposes.

2. Nonhighway Uses.—Gasoline is regarded 

as having been used for a nonhighway purpose 

if used otherwise than as fuel in a highway 

Do not include gasoline used for which you 

claimed a refund on a Form 843 filed on time for 

any of the first three quarters of your taxable 

year. (See Instruction B.)

3. Local Transit Systems.—Include gasoline 

used during any calendar quarter in vehicles 

while engaged in furnishing scheduled common 

carrier public passenger land transportation 

service along regular routes. The ultimate 

purchaser of the gasoline may claim a credit of 

2 cents for each gallon of gasoline used this 

way. Enter on line 2, column A, for “Number of 

Gallons Used” the result of multiplying—

(a) the number of gallons used in connection 

with the total passenger fare revenue from 

scheduled service during the quarter, by

(b) the percentage the ultimate purchaser's 

commuter fare revenue was to the total 

passenger fare revenue, both kinds of revenue 

being from scheduled service during the 

quarter. (Note—To justify a claim for credit this 

percentage must be at least 60 percent.)

Commuter fare revenue consists of income 

received for transporting persons and received 

(a) in amounts each not exceeding 60 cents; (b) 

for commuters' or season tickets for single trips 

of less than 30 miles; or (c) for commuters' 

tickets valid up to one month.

When claiming refund or credit, local transit 

systems must attach a statement with the 

information required under section 6421 and its 

Regulations.

Do not include gasoline used for which you 

claimed a refund on a Form 843 filed on time for 

any of the first three quarters of your taxable 

year. (See Instruction B.)

E. What Special Fuels to Include.

1. Farm Use.—You may claim an income tax 

credit for Federal excise tax imposed on fuels 

defined in paragraphs 4(a), (b), and (c), and 

which are used on a farm for farming purposes 

by the owner, tenant, or operator of the farm 

within the meaning of Instruction D.1.

2. Local Transit Systems.—This applies to 

fuels defined in paragraphs 4(a) and (b), and 

which the purchaser uses during any calendar 

quarter in vehicles in furnishing scheduled 

common carrier public passenger land 

transportation service along regular routes. (See 

Instruction D.3., above, to figure the “Number of 

Gallons Used.“)

Do not Include special fuels used for which 

you claimed a refund on a Form 843 filed on 

time for any of the first three quarters of your 

taxable year. (See Instruction B.)

3. Nontaxable Uses.—This relates to fuels 

defined in paragraphs 4(a), (b), and (c), and 

which you either use for a purpose taxable at a 

lower rate than the purpose for which it was 

sold, use for a nontaxable purpose, or resell. 

You may claim a credit for the tax on the fuel 

sold to you, but if you used the fuel you must 

 

Do not include special fuels used for which 

you claimed a refund on a Form 843 filed on 

time for any of the first three quarters of your 

taxable year. (See Instruction B.)

4. Definitions.

(a) Diesel Fuel.—Any liquid other than any 

product taxable as gasoline under section 4081, 

that is:

(i) sold by any person to an owner, lessee, or 

other operator of a diesel-powered highway 

vehicle, for use as fuel in the vehicle; or

(ii) used by any person as a fuel in a 

diesel-powered highway vehicle unless there 

was a taxable sale of such liquid under (i) 

above.

(b) Special Motor Fuels.—These fuels are 

benzol, benzene, naphtha, liquefied petroleum 

gas, casinghead and natural gasoline, or any 

other liquid (except kerosene, gas oil, fuel oil, or 

any product taxable under section 4081 or 

described as taxable in paragraph 4(a) above). 

That is the fuel must be:

(i) sold by any person to an owner, lessee, or 

other operator of a motor vehicle or motorboat, 

for use as fuel in the motor vehicle or 

motorboat; or

(ii) used by any person as a fuel in a motor 

vehicle or motorboat, unless there was a 

taxable sale of such liquid under (i) above.

(c) Noncommercial Aviation Fuel.—Any 

liquid (such as, jet fuel) not taxable under 

section 4081, and taxed at 7 cents a gallon; and 

gasoline taxable under section 4081 and taxed 

at 3 cents a gallon. That is, the liquid or gasoline 

must be:

(i) sold by any person to an owner, lessee, or 

other operator of an aircraft, for use as fuel in 

the aircraft for other than commercial aviation; 

or

(ii) used by any person as a fuel in an aircraft 

in other than commercial aviation, unless there 

was a taxable sale of such liquid under (i) 

above.

(d) Commercial Aviation.—Commercial 

aviation is use of an aircraft in a business of 

transporting by air persons or property for 

compensation or hire and requires the reporting 

of excise tax from such business on Form 720, 

Quarterly Federal Excise Tax Return. The use 

of an aircraft would be exempt from filing Form 

720 and not considered commercial aviation if 

the aircraft (a) has a maximum certified takeoff 

weight of 6,000 pounds or less and is not 

operated on an established line, or (b) is owned 

or leased by a member of an affiliated group, 

and is not available for hire to nonmembers.

F. What Fuels Not to Include.—Gasoline 

lost or destroyed through spillage, accident, 

shrinkage, etc., is not considered to be used 

and does not qualify for a credit or refund.

G. Additional Information.—Internal 

Revenue Service Publications 225, Farmer's 

Tax Guide, and 378, Federal Fuel Tax Credit or 

Refund for Nonhighway and Transit Users, are 

available free at your Internal Revenue Service 

office.

U.S. GOVERNMENT PRINTING OFFICE: 1976—O–218–355