OMB No. 1545-0162 Credit for Federal Tax Paid on Fuels

Form 4136 (And Credit for Purchase of Diesel-Powered Highway Vehicles)

Department of the Treasury

Internal Revenue Service

Attachment

© Attach this form to your income tax return. Sequence No. 23

Name (as shown on your income tax return) Taxpayer identification number

Diesel-Powered Highway Vehicle Credit

(a)

Number of

vehicles

(c)

Credit

(col. (a) 3 col. (b))

(b)

Credit per vehicle

1 Diesel-powered cars $102.00 $

2 Diesel-powered light trucks and vans 198.00

3 Total diesel-powered highway vehicle credit. Add lines 1 and 2, column (c) © $

Fuel Tax Credit

Cat. No. 12625R Form 4136 (1996)

Part I

Part II

1

2

3 318

5 Nontaxable Use of Gasohol

Rate Gallons Amount of credit CRN

312

Gasohol containing at least 10% alcohol

Gasohol containing at least 7.7% alcohol but less than

10% alcohol

Gasohol containing at least 5.7% alcohol but less than

7.7% alcohol

$.129

.14142

.15222

Nontaxable Use of Gasoline

Rate Gallons Amount of credit

Off-highway business use $.183

4

CRN

301

Nontaxable Use of Undyed Diesel Fuel (Lines 6a, b, and c)

Rate Gallons Amount of credit

$.243

6

CRN

303

CRN

Use on a farm for farming purposes .183

.183

b

a

c

Heating oil

b Off-highway business use

a

c

.243

.243

.243

d

a

b

c

(98)

Other nontaxable use

Other nontaxable use (excluding use on a farm for

farming purposes)

%

%

© See the Instructions for Form 4136.

Type

of use

Type

of use

Type

of use

96

Claimant certifies that the diesel fuel did not contain visible evidence of dye.

If any of the diesel fuel included in this claim did contain visible evidence of dye, attach a detailed explanation and check here

Lines 6a, b, and c: Claimant has the name and address

of the person(s) who sold the diesel fuel to the claimant

and the date(s) of the purchase(s), and if exported, the

required proof of export.

Claimant, a registered ultimate vendor, sold diesel fuel for

use by the buyer on a farm for farming purposes, or to a

state or local government for its exclusive use. Claimant

obtained the required certificate from the buyer and has

no reason to believe any of the information in the

certificate is false.

Sales by Registered Ultimate Vendors of Undyed Diesel Fuel (Line 6d)

Caution: You cannot claim any amounts on Form 4136 that you claimed on Form 8849, Form 843, or Schedule C (Form 720).

%

Caution: You cannot claim a credit on a diesel-powered vehicle that was purchased after August 20, 1996.
12 Total fuel tax credit. Add lines 4–11 © $

Total Income Tax Credit

Total income tax credit claimed (add lines 3 and 12). Enter here and on Form 1040, line 57 (also

check box b on line 57); Form 1120, line 32g; Form 1120-A, line 28g; Form 1120S, line 23c; Form

1041, line 24g; or the proper line of other returns © $

Form 4136 (1996) Page 2

Part III

12

13

13

Gasohol Blenders

Percentage of alcohol in the gasohol Rate Gallons of gasoline Amount of credit CRN

At least 10% alcohol

At least 7.7% alcohol but less than 10% alcohol

At least 5.7% alcohol but less than 7.7% alcohol

10

302

Use of Undyed Diesel Fuel—Train and Intercity and Local Bus

CRN

Diesel-powered trains

11

Rate Gallons

Certain intercity and local buses .17

305

Amount of credit

b

a

c

a

b

8

Special motor fuels (other than LPG or fuels used in intercity

or local buses)

9

Nontaxable Use of Gasoline Used in Aviation

Nontaxable Use of Aviation Fuel (other than gasoline)

$.183

Other nontaxable use

Other nontaxable use

Used in commercial aviation (other than foreign trade)

.043/.218*

.183/.193*

$.14/.15*

7

Compressed natural gas (credit rate per thousand cubic

feet) .4854

Rate Gallons Amount of credit CRN

Rate Gallons Amount of credit CRN

Rate Gallons Amount of credit CRN

304

307

310

Nontaxable Use of Special Fuels

a

b

a

b

a

b

Liquified petroleum gas (LPG)

Special motor fuels used in intercity or local buses

.183

c .109

d

%

%

%

%

* This rate applies after August 26, 1996. See the instructions on page 4.

MCF

$.1875

Type

of use

Type

of use

Type

of use

Claimant certifies that the diesel fuel did not contain visible evidence of dye.

If any of the diesel fuel included in this claim did contain visible evidence of dye, attach a detailed explanation and check here

Claimant has the name and address of the person(s) who sold

the diesel fuel to the claimant and the date(s) of the purchase(s).

Used in commercial aviation (other than foreign trade)

% $.175*

$.03967

.02979

.02158

Claimant bought gasoline taxed at the full rate ($.183) and blended

it with alcohol to make gasohol. The gasohol was used or sold for

use in a trade or business.
Form 4136 (1996) Page 3

Requirements

Reporting Fuel Tax Credit in Income

General Instructions

Purpose of Form

Part II—Fuel Tax Credit

Specific Instructions

Part I—Diesel-Powered Highway Vehicle

Credit

If you bought a diesel-powered highway vehicle after

December 31, 1995, and before August 21, 1996, 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 under the laws of any state for highway use

in the United States. If you claim the credit for

diesel-powered vehicles, you must reduce the depreciable

basis of the vehicle by the credit claimed.

Additional Information

Type of Use Table

The table on page 4 lists the nontaxable uses for which you

may claim a credit for taxes paid on fuels. You must enter

the item number from the table in the applicable boxes in the

Type of Use column. See Pub. 378 for definitions of these

uses.

Line 4

4a. Off-highway business use.—You must have used the

gasoline for a business use other than in a highway vehicle

registered (or required to be registered) for highway use. You

cannot claim a credit for personal use of gasoline.

4b. Use on a farm for farming purposes.—You must have

used the gasoline on a farm for farming purposes. You

cannot claim a credit for personal use of gasoline.

Recordkeeping

5. New rules for diesel fuel credits have resulted in

changes to lines 6 and 11. Also, see the instructions on

page 4.

Paperwork Reduction Act Notice.—We ask for the

information on this form to carry out the Internal Revenue

laws of the United States. You are required to give us the

information. We need it to ensure that you are complying

with these laws and to allow us to figure and collect the right

amount of tax.

The time needed to complete and file this form will vary

depending on individual circumstances. The estimated

average time is:

If you have comments concerning the accuracy of these

time estimates or suggestions for making this form simpler,

we would be happy to hear from you. You can write to the

Internal Revenue Service at the address listed in the

instructions of the tax return with which this form is filed.

Instructions for Form 4136

Recordkeeping 13 hr., 10 min.

Preparing and sending

the form to the IRS 20 min.

You are not required to provide the information requested

on a form unless the form displays a valid OMB control

number. Books or records relating to a form or its

instructions must be retained as long as their contents may

become material in the administration of any Internal

Revenue law. Generally, tax returns and return information

are confidential, as required by Code section 6103.

Changes To Note

2. Generally, fuel tax rates decreased by $.001 (LUST) after

December 31, 1995.

3. Tax rates for gasoline used for aviation and aviation fuel

(other than gasoline) changed during 1996. See lines 8 and

9.

4. The gasohol blender claim is reinstated. See line 10 and

the instructions on page 4.

6a. Heating oil.—You must have used the diesel fuel as

heating oil.

6b. Off-highway business use of undyed diesel fuel.—You

must have used the diesel fuel for a business use other than

in a highway vehicle registered (or required to be registered)

for highway use.

Line 6

Line 5

You must have used the gasohol for uses 1, 2, 3, 4, 6, or 8

from the Type of Use Table. List the item number on line 5.

The credit rate per gallon is based on the percentage of

alcohol in the mixture.

4c. Other nontaxable uses of gasoline.—You must have

used the gasoline for uses 3, 4, 6, or 8 from the Type of Use

Table. List the item number on line 4c. To claim a credit for

gasoline used in aviation, use line 8. Use Form 4136 to claim the credit for diesel-powered

highway vehicles and to claim the credit for Federal excise

tax paid on fuels. (Partnerships cannot file this form; instead,

they must include a statement on Schedule K-1 (Form

1065), Partner’s Share of Income, Credits, Deductions, etc.,

showing the allocation of the credits to each partner

specifying the number of gallons of fuel allocated to each

partner and the applicable tax rates.)

To claim a fuel tax credit you must (1) buy taxed fuel, and

(2) use it for a purpose listed in the Type of Use Table (see

page 4).

You must keep records to support any credits claimed on

this return for at least 3 years from the date the return is due

or filed, whichever is later.

You must include in your gross income the amount of the

credit from line 12, Part II, if you took a deduction on your

tax return for the taxes paid and that deduction reduced your

tax liability.

You may be able to file Form 8849, Claim for Refund of

Excise Taxes, to claim a refund of excise taxes instead of

claiming credit on Form 4136. Pub. 378, Fuel Tax Credits

and Refunds, includes definitions and additional excise tax

rules. Pub. 225, Farmer’s Tax Guide, also includes

information on the credit for Federal tax paid on fuels.

6. If you used undyed diesel fuel in a motorboat after

August 26, 1996, you may claim a credit for the tax paid on

that fuel. See line 6c.

Learning about the

law or the form 6 min.

1. The credit for diesel-powered vehicles does not apply to

vehicles purchased after August 20, 1996.
Form 4136 (1996) Page 4

7a, b, and c. Special motor fuels.—Special motor fuels

generally may be bought for nontaxable purposes at a price

that does not include the excise tax. However, if you bought

taxed special motor fuels, you must have used the special

motor fuels for uses 1, 2, 3, 4, 6, 8, 10, or 14 from the Type

of Use Table. List the item number on line 7a, b, or c. Use

the credit rate shown on lines 7a through 7c for the above

uses.

Line 10

Line 8

Line 9

8b. Other nontaxable uses.—You may take a credit for the

$.183 per gallon of tax included in the price of gasoline. If

tax was imposed at the $.193 per gallon rate, you may take

a credit for the $.193 per gallon. You must have used the

gasoline in aviation for uses 1, 10, or 12 from the Type of

Use Table. List the item number on line 8b.

8a. Used in commercial aviation.—You may take a credit

for $.14 per gallon of the tax included in the price of

gasoline. If tax was imposed at the $.193 per gallon rate, you

may take a credit for $.15 per gallon.

7d. Compressed natural gas.—Compressed natural gas

generally may be bought for nontaxable purposes at a price

that does not include the excise tax. However, if you bought

compressed natural gas at a price that included the tax, you

must have used the compressed natural gas for uses 1, 2, 3,

4, 6, 8, 10, or 14 from the Type of Use Table. List the item

number on line 7d. The rate shown on line 7d is per

thousand cubic feet (MCF).

Line 11

You must have used the diesel fuel for train or certain

intercity or local bus use. For other bus uses that qualify for

a full refund of the tax, use line 6c.

Line 7

9a. Used in commercial aviation (other than foreign

trade).—You may take a credit for $.175 per gallon of the

$.218 tax imposed on aviation fuel after August 26, 1996.

9b. Other nontaxable uses.—You may take a credit for

$.043 per gallon of the tax included in the price of aviation

fuel. If aviation fuel was taxed at $.218 per gallon, you may

take a credit for the $.218 per gallon. You must have used

the aviation fuel for uses 1, 10, 12, and 13 from the Type of

Use Table. List the item number on line 9a.

If you bought gasoline taxed at the full rate, have not

claimed a refund, and used that gasoline to make gasohol,

you may take a credit for each gallon of gasoline used to

make gasohol. The credit rate per gallon is based on the

percentage of alcohol in the mixture.

Item No. Type of Use

1 On a farm for farming purposes

2 For business other than in a highway vehicle registered

(or required to be registered) for highway use

3 Export

4 In a boat used in commercial fishing

5 For diesel fuel in a boat in

● the business of transporting persons or property for

compensation or hire, or

● any other trade or business, except an activity

generally considered entertainment, amusement, or

recreation

6 In an intercity or local bus

7 For diesel fuel in a qualified local bus that

● can seat at least 20 adults (excluding the driver) and

● is under contract by a state or local government to

furnish (for compensation) intracity passenger land

transportation that is available to the general public and

is scheduled and along regular routes

8 In a bus that transports students and school employees

9 For diesel fuel other than as a fuel in the propulsion

engine of a diesel-powered highway vehicle, train, or

boat

10 In foreign trade

11 In commercial aviation

12 In certain helicopters

Type of Use Table

For aviation fuel used other than as a fuel in a propulsion

engine of an aircraft

For special motor fuels used other than as a fuel in a

propulsion engine of a motor vehicle or a motorboat

13

14

Diesel fuel used in a motorboat (after August 26, 1996

and before January 1, 1998).

15

6d. Sales by registered ultimate vendors.—You must

attach the following information:

2. The name and TIN of each farmer, custom harvester, or

governmental unit who bought diesel fuel from you and the

number of gallons that you sold to each, and

1. Your UV registration number issued to you by the IRS.

3. A statement that you have:

● Not included the amount of tax in the sales price and

not collected the amount of tax from the buyer; or

● Repaid the amount of the tax to the ultimate purchaser

of the fuel; or 

● Obtained the written consent from your buyer to take the

credit.

6c. Other nontaxable use of undyed diesel fuel.—You must

have used the diesel fuel for uses 3, 4, 5, 7, 8, 9, or 15 from

the Type of Use Table. List the item number on line 6c. To

claim a credit for diesel fuel used in certain intercity or local

buses or diesel-powered trains, use line 11.

Caution: You cannot claim a credit on line 6c for the tax paid

on diesel fuel that you used on a farm for farming purposes.