om 4136

Department of the Treasury
Internal Revenue Service

Computation of Credit for Federal Tax on
Gasoline, Special Fuels, and Lubricating Oil

» Attach this form to your income tax return.

1975

Name (as shown on your income tax return)

| Identifying number

Gasoline, Diesel Fuel

and Special Motor Fuels Lubricating Oil
Type of Use “eels Se rigid by “ili! a ened,
(A) (B) (c) (0) (E) (F)
1 Nonhighway:
a. Farm (for farming purposes) 02 |, .06
04 J*
b. Motorboat . 02 06 |.
c. Other (specify) _ 02 \.
- - 04 QE zy 26 ZY
2 Local transit system. (See instruc- GZfZfffj7Z Y/ 7/7/77
tion D.3.) * ‘ i .02 Yi V7 Z Y
3 Aircraft . . WWMM. 06
4 Totals $ WME
[Part ll] Aviation Fuels
Fuel comple det Ruch asgling Rate of “erktpted by
Type of Use Number of Gallons Used Number of Gallons Used Tax Column (C)

a) i)

5 a. Farm (for farming purposes)

UMMM

YU,

b. Aviation (only applicable to
commercial _use as defined in

instruction E.4.(d))

——

6 Total. . . . .

7 Total income tax credit claimed Gum of ine 4, columns. © and ®: and line 6, column roy) + L$

* Tax Rate (per gallon used)

Type of Use

Gasoline
(Nonaviation

Diesel Fuel and Special Motor Fuel

Aviation Fuel
Gasoline

Farm (farming purposes)

4

2¢ or 4¢ whatever paid

4g or 7¢ whatever paid

Other

Ze or z 7 Zz

Aviation (only applicable to commercial use as de-

fined in instruction E.4.(d))

4¢ or 7¢ whatever paid

Instructions

(Section references are to the Internal
Revenue Code unless otherwise specified)

A. Who May File.—Any individual, estate,
trust, or corporation, including a small busi-
ness’ corporation and domestic interna-
tional sales corporation, which claims credit
for Federal excise tax on the gallons used
of gasoline, special fuels, and lubricating
oil, must file this form. You should attach
it to the income tax return.

A partnership need not file this form be-
cause the partners claim the credit for Fed-
eral excise tax on gasoline, special fuels,
and lubricating oil used. However, a part:
nership must attach a statement to their
return, Form 1065, The statement 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 in the form above.

Special refund provisions are available
if the credit for any fuel category or lubri-
cating oil amounts to $1,000 or more in
any of the first three quarters of your tax-
able year. (See Instruction B.)

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) gas-
oline used (except, on a farm for farming
purposes), (b) lubricating oil used, or (c)
‘special fuels used (except on farm for farm-

ing purposes). However, you must file a
claim for any quarter before the end of the
next quarter. A claim for gasoline, special
fuels, and lubricating oil should’ provide
separate computations as shown in the
form above. (If you prefer, you may use the
schedule above to show these figures.)

C. What Lubricating Oil to Include.—You
may claim an income tax credit for lubri-
cating oil (other than cutting oils and used
oil) that is used otherwise than in a high-
way motor vehicle. Cutting oils are oils sold
for use on metals in cutting and machining
operations (such as forging, drawing, roll-
ing, shearing, punching, and stamping).
Uses of lubricating oil other than in a hig!
way motor vehicle include oiling plant ma-
chinery and lubricating vehicles other than

(Continued on back)

Form 4136 (1975)


Instructions (Continued)

highway motor vehicles, such as aircraft,
bulldozers, power shovels, or farm tractors.

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, cer-
tain 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 in-
come 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 struc:
tures used primarily for the raising of agri-
cultural 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 har-
vesting any agricultural or horticultural
commodity, including the raising, shearing,
feeding, caring for, training and manage-
ment 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 pro-
duced more than half the commodity
treated;

(c) planting, cultivating, caring for, or
cutting trees, or preparing (other than mill-
ing) 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 can-
ning operations; (3) for personal or other
nonfarming purposes; or (4) on the farm of
another person, even though used for farm-
ing purposes.

Often a vehicle will be used both on the
farm for farming purposes and for non-
farming purposes. In such a case, give a
breakdown of the gasoline used, and show
the gallons used on the farm for farming
Purposes.

2. Nonhighway Uses.—Gasoline is _re-
garded as having been used for a nonhigh-
way purpose if used otherwise than as

fuel in a highway vehicle which, (1) when
used is registered or required to be regis-
tered for highway use under the laws of
any State or foreign country, or (2) is a
highway vehicle owned by the United
States, and used on the 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 gas-
oline used during any calendar quarter in
vehicles while engaged in furnishing sched-
uled 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 con-
nection with the total passenger fare rev-
enue from scheduled service during the
quarter, by

(b) the percentage the ultimate pur-
chaser’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 in-
come received for transporting persons
and received (a) in amounts each not ex-
ceeding 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 sec-
tion 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 in-
come tax credit for Federal excise tax im-
posed 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 passen-
ger land transportation service along reg-
ular 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 quar-
ters 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 reduce the
credit claimed by the tax, imposed by sec-
tion 4041, applicable to the actual use.

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 quar-
ters of your taxable year. (See Instruction
B.)

4. Definitions.

(a) Diesel Fuel.—Any liquid other than
any product taxable as gasoline under sec-
tion 4081, that is:

(i) sold by any person to an owner, les-
see, or other operator of a diesel-powered
highway vehicle, for use as fuel in the ve-
hicle; 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 pe-
troleum gas, casinghead and natural gaso-
line, or any other liquid (except kerosene,
gas oil, fuel oil, or any product taxable un-
der 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, les-
see, 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.

(©). 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, les-
see, 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 1s 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 ex-
empt from filing Form 720 and not con-
sidered 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 non-
members.

F. Additional Information.—Internal Rev-
enue 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.

‘x US. GOVERNMENT PRINTING OFFICE : 1995-O-575-144 E. I, NO. 73-0667115