4136 Computation of Credit for Federal Taxon Fuels = | “201 _
Demet ofthe Testu (And Credit for Purchase of Diesel-Powered Highway Vehicles) q OF 3} 8
internal Revenue Service > Attach this form to your income tax return. eae No 25
Name (as shown on your income tax return) Social security or employer identification number

Type of Use gasrece' | ee | squumeyann
1 Diesel-powered highway vehicles purchased this year (See instructions.) . $
2 Nonhighway:
a Farm (for farming purposes) : HU Yh

(i) Gasoline, gasoline/alcohol mixture (gasohol) . .03/.0333/.09* Uf

(ii) Diesel fuel, diesel/alcohol mixture . an 09/.10/.15* |$

(ii) Special motor fuels, special fuels/alcohol mixture. .03/.045, a

b Commercial fishing vessel (See instructions.): Y

(i) Gasoline, gasoline/alcohol mixture (gasohol) . .03/.0333/.09* MMM

(ii) Diesel fuel, diesel/alcohol mixture . fe .09/.10/.15* |$

(iii) Special motor fuels, special fuels/alcohol mixture. .03/.045/.09* Yj

¢ Off-highway business (specify) ....

(i) Gasoline, gasoline/alcohol mixture (gasohol) . .03/.0333/.09*| / Ms

(ii) Diesel fuel, diesel/alcohol mixture . oo .09/.10/.15* |$

(iii) Special motor fuels, special fuels/alcohol mixture . .03/.045/.09*

3a Intercity, local, and school buses (See instructions.) . 03/.0333/.09/.12/.15* HMMA
b Qualified local buses (See instructions.) . . 15 $
4 Gasoline and diesel fuel used for certain nontaxable purposes .03/.09/.10/.15*) $
5 Gasoline/alcohol mixture (gasohol) . 0566_|$
6a Qualified methanol and ethanol . .06 Y/ ZG
b Diesel/alcohol mixture... . . .05 $
c¢ Special motor fuels/alcohol mixture .0566
7 Qualified taxicab Pe 04 $
8 Leaking underground storage tank taxes (See instructions.) . .001/.0011/.0005* | $
Fuel Used in Aviation: YY},
9 Farm (for farming purposes) -03/.09/.119/.12/.14"| $
10 Aviation (See instructions.) . oa : rr .03/.09/.119/.12/.14*| $
11 Total income tax credit claimed (add lines 1 through 10). Enter here and on Form 1040, line 59; 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

laworthe form . - 6 min.
Preparing and sending

theformtoIRS . . . 13 min.

Ifyou have comments concerning the accuracy
of this time estimate 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 should
Not file this form; instead, they should 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 rate as shown on this form.)

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, avgas,
methanol, ethanol, benzol, naphtha, liquefied
petroleum gas, casinghead and natural gasoline
and other taxable liquids. These fuels qualify for
the credit if they are used for the various
purposes described in the line-by-line
instructions, the purchase price of the fuels
includes the tax, and 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
claim a refund of the tax on Form 843, Claim.
Generally, to do so, you must have paid at least a
certain amount of tax during the first three
quarters of the year. See Pub. 378, Fuel Tax
Credits and Refunds, for more information.

You must claim a credit on Form 4136, rather
than a refund on Form 843, for tax paid during
the fourth quarter that was less than certain
amounts and tax paid on fuels used on a farm for
farming purposes.

Including Credit or Refund in Income.—The
credit or refund must be included in your gross
income if you claimed the taxes paid as an
expense deduction that reduced your income tax
liability. See Pub. 378 for more information.
Additional Information on Fuel Credits.—Pub.
225, Farmer's Tax Guide; Pub. 378, Fuel Tax
Credits and Refunds; and Pub. 510, Excise Taxes
for 1989; 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 Vehicle.—If you
bought a diesel-powered highway vehicle 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

Form 4136 (1988)


Form 4136 (1988)

Page 2

state. Enter the credit on line 1. If you bought
more than one vehicle, enter the total credits
online 1.

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 operated as a trade or business 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:

Line 2a(i)—9 cents a gallon for gasoline; 3
cents a gallon for gasohol; and 3¥ cents (.0333)
a gallon for gasoline purchased for blending 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 after
March 31, 1988, for mixing with alcohol.

\—9 cents a gallon for special motor
fuels; 3 cents a gallon for special fuels mixed with
alcohol; 9 cents or 442 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:

Line 2b(i)—9 cents a gallon for gasoline; 3
cents a gallon for gasohol; 3% cents (.0333) a
gallon for gasoline purchased for blending 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 after
March 31, 1988, for mixing with alcohol.

Line 2b(ili)—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 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 in a
motorboat that is not a commercial fishing vessel,
or 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:

Line 2c(i)—9 cents a gallon for gasoline; 3
cents a gallon for gasohol; 3% cents (.0333) a
gallon for gasoline purchased for blending 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 after
March 31, 1988, for mixing with alcohol.

Line 2c(ili)—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 3a—Intercity, Local, and School
Buses.—You may claim a credit for tax paid on
asoline, gasohol, diesel fuel, and special motor
'uels 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 seating capacity of the bus is 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% cents (.0333) a gallon for
gasoline purchased for blending 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.

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 (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.
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, used for a
nontaxable purpose, or used for a purpose other
than the one you bought it for. You may also
claim a 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 after March 31, 1988, for
mixing with alcohol.
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% cents (.0566) a gallon
for gasoline.
Line 6a—Qualified Methanol and Ethanol.—
These are liquid fuels, 85% of which are alcohol
produced other than from petroleum or natural
Bas. 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.
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
reat is 534 cents (.0566) a gallon for special
fuels.

Line 7—Qualified Taxicab Use.—If you are the
ultimate purchaser of the fuel, you may claim a
credit of 4 cents a gallon for tax paid on gasoline,
special motor fuels, or diesel fuel used ina
taxicab, if the cab and the service provided meet.
certain tests. To qualify, the taxicab must be a
land vehicle that holds fewer than 10 adults
including the driver. The taxicab must furnish
nonscheduled land transportation for a fixed fee.
The driver must be properly licensed as a taxicab
driver and must be able to furnish ridesharing.
For 1978 and later model years, the vehicle
model must have a fuel economy rating better
than the average fuel economy standard for the
model year. See Pub. 378 for the average fuel
economy standard for each model year. This
credit will not be allowed for fuel used after
September 30, 1988.

Line 8—Leaking Underground Storage Tank
Taxes.—You may claim a credit of '/10 of 1 cent
(.001) a gallon for tax paid on gasoline or gasohol
used in intercity, local, or school buses, on a farm
or in farming aviation, in commercial fishing
vessels, in helicopter aviation use described
below, and in all commercial aviation. You may
also claim a credit for tax paid on diesel fuel and
special motor fuels of 1/19 of 1 cent (.001)a
gallon for use on a farm, in farming aviation, in
commercial fishing vessels, in qualified local
buses and school buses, in off-highway use, and
in helicopter aviation use described below.The
amount of credit for qualified ethanol and
methanol is 10 of 1 cent (.0005) a gallon. If you
purchased the fuel for blending with alcohol, the
amount of credit is 1/ of 1 cent (.0011) a gallon.

Lines 9 and 10—Fuel Used in Aviation.—You
may claim a credit for fuel (including an alcohol
mixture) used in aviation, on a farm for farming
purposes, for commercial aviation, and for
certain helicopter and certain 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. 378 for more
information on fuels used in commercial
aviation.

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 (effective October 1,
1988). 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.

You may claim a credit for gasoline (avgas)
used for these purposes at 9 or 12 cents (11.9
cents for purchases after March 31, 1988) 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.

Line 11—Total Income Tax Credit.—Add the
amount for each credit and enter the total on line
11. Also, enter the total amount of credit on the
proper line of your income tax return.