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.

‘OMB No. 1545.0162

1983

Name (as shown on your income tax return) Social security or employer identification number
Gasoline, Diesel Fuel and Special Motor Fuels
Type of business use ‘A. Number of B. Rate of C. Multiply Column A
Gallons Used Tax by Column B
1 Nonhighway:
a Farm (for farming purposes) (Ground applicators of _Bericultural 02
substances, see instruction C.1.) 04pe [F
.09
b Commercial fishing vessel (See instructions C.2. and D.2.(b)):
02
(i) Gasoline : { 04S %
09
02
(ii) Diesel fuel or special fuels . . 4b
.09
02 =
¢ Off-highway business (specify) ___ 04) *
.09
02
2 Intercity, local, and school buses (See instruction C.4.) . . 04$y
.09
3 Gasoline/alcohol mixture . : 04
055 *
4 Qualified taxicab 04
5 Total (add lines 1, 2, 3, and 4) . . . a... RIS
(Specify type of business in which oil used —see instruction Be Lubricating Oi!
i 6S
Aviation Fuel
7 Farm (for farming purposes) (Aerial applicators of _2ericultural 12 $
substances, see instructionC.1.) - at *
8 Aviation (Applies only to commercial or certain helicopter uses as $
defined in instruction C.7.) _ . Ce ee { it *
214
9 Total income tax credit claimed (add lines 5, 6, 7, and 8) bls

* Use rate paid or allowable rate if lesser

Instructions

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

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.

Refund Instead of Credit.—If you paid excise
tax of at least $1,000 ($200 for gasoline/alcohol
mixture and $50 for gasoline, diesel fuel, or
special fuels used in a qualified taxicab) on any
fuel category or lubricating oil used in any one of
the first three quarters of the tax year, you may
file for a refund of the tax instead of claiming a
credit for it on Form 4136. To claim the refund,
file Form 843, Claim, before the end of the
quarter following the one for which you are
claiming the refund. Show separate
computations for a claim on gasoline, special
fuels, and lubricating oils. You may use Form
4136 as a worksheet to show your computations
and attach it to the Form 843 you file.

You must claim a credit, rather than a refund,
for any tax paid during the fourth quarter, and for
any tax under $1,000 ($200 for gasoline/alcohol
mixture and $50 for gasoline, diesel fuel, or
special fuels used in a qualified taxicab) for any
fuel or lubricating oil used in the first three
quarters. You must also claim the credit rather
than a refund, for tax paid on gasoline or special
fuels used on a farm for farming purposes.

Do not claim as a credit on Form 4136 any
amount that you previously claimed asa refund.

A. Purpose of Form.—File this form if you claim
credit for Federal excise tax on certain fuels, and
lubricating oil as defined in instructions C, D,
and E.

The credit is figured by multiplying the number
of gallons used by the rate of Federal excise tax
paid or the allowable rate if lesser.

An individual, estate, trust, or corporation may
file this form, but a partnership may not.
However, when a partnership files Form 1065,

U. S. Partnership Return of Income, it must
include a statement showing:

@ How many gallons of the fuels are allocated to
each partner.

© The types of use, as shown in this form.

B. Year To Include the Credit Or Refund In
Income.—When you claim a credit or refund,
you must include it in your gross income to the
extent it resulted in a reduction of your income
tax. The year in which you include it depends
upon your method of accounting

1. Cash Method.—If you use the cash
method, include the amount of credit in gross
income for the tax year in which you file the tax
return that claims the credit. If you file an
amended return, or if you file a claim for credit
or refund (and claim the credit for the tax),
include the refund that results from the credit
in your gross income for the tax year you
receive it.

2. Accrual Method.—If you use the accrual
method, figure the amount of the credit or
refund due at the close of your tax year. Include
itin income, even if you have not filed a claim
for refund.

C. What Gasoline to Include.—You may claim
credit for Federal excise tax on gasoline or

Form 4136 1983)


gasohol for farm uses, commercial fishing
vessel uses, off-highway business uses,
intercity, local, or school bus uses, qualified
taxicab use, and commercial or certain
helicopter aviation uses.

1. Farm Use.—You may claim credit for
gasoline used for farming on a trade or
business farm in the United States in the
amount of 4¢ or 9¢, whichever paid, a gallon.
(See instruction C. 7. for aviation fuel used for
farming.) Such farms include the following:

© Stock, dairy, poultry, fur-bearing animal,
and truck farms

© Plantations, ranches, nurseries, ranges,
and greenhouses.

© Orchards.

Gasoline is considered used for farming only if
the owner, tenant, or operator of the farm uses
the gasoline. If gasoline is used for the farming
tasks set forth below by anyone else, the owner,
tenant, or operator is considered the user of the
gasoline. There is an exception to this rule. An
aerial applicator (also ground applicators after
3/31/83) of agricultural substances is con-
sidered to have used gasoline for farming when
performing the farming tasks under the following
conditions

© The applicator is the ultimate purchaser of

the gasoline; and

© The farrn owner, tenant, or operator agrees
not to be treated as the user and ultimate
purchaser of the gasoline.

The following tasks are considered farming:

(2) Cultivating the soil, and raising or
harvesting any horticultural or agricultural
commodity. This includes raising livestock, bees,
poultry, fur-bearing animals, and wildlife.

(b) Handling, drying, packing, grading, or
storing any horticultural or agricultural
commodity before manufacture, but only if the
owner, tenant, or operator produced more than
half of the commodity treated.

(c) Planting, cultivating, or cutting trees, or
preparing them for market. This does not include
milling the lumber.

(a) Operating, managing, conserving,
improving, or maintaining the farm and its tools
and equipment.

Gasoline is not considered used by you for
farming under the following conditions:

(a) It is used off the farm to transport
livestock, feed, crops, or equipment.

(b) It is used in processing, packaging,
freezing, or canning operations.

(c) Itis used for personal purposes.

(d). It is used on the farm of another person,
even though used for farming.

Often a vehicle will be used on the farm both
for farming and for nonfarming purposes. In
these cases, show the number of gallons of
gasoline used for each purpose when claiming
credit.

2. Commercial Fishing Vessel Use.—You may
claim a credit for tax paid on gasoline used ina
commercial fishing vessel in the amount of 2¢ a
gallon if purchased and used before 4/1/83, 4¢ a
gallon if purchased before 4/1/83 and used after
3/31/83, and 9¢ a gallon if purchased and used
after 3/31/83. A commercial fishing vessel is one
used in the fisheries or whaling business and
used:

© Exclusively for catching shrimp and other
types of aquatic life for sale commercially as
bait, or

© On specific trips exclusively for catching fish
to be sold commercially.

3. Off-highway Business Uses.—You may
claim a credit for tax paid on gasoline used for
off-highway business purposes in the amount of
2¢ a gallon if purchased and used before 4/1/83,
4¢ a gallon if purchased before 4/1/83 and used
after 3/31/83, arid 9¢ a gallon if purchased and
used after 3/31/ 83. Off-highway business use
does not include gasoline used in a motorboat or
ina highway vehicle that either:

© Is registered or required to be registered for
highway use under the laws of any State, the
District of Columbia, or foreign country; or

© Is owned by the United States and is used on
the highway.

4. Intercity, Local, or School Bus Uses.—If you
are the ultimate purchaser of gasoline for a bus
that provides transportation (1) to the general
Public for a fee or (2) to students and school
employees, you may claim a credit for tax paid on
gasoline used for this service in the amount of 4¢
or 9¢, whichever paid, a gallon.

If you provide transportation on intercity and
local buses on non-scheduled irregular routes,
you may take the credit only if the seating
Capacity of the bus is at least 20 adults, not
including the driver.

5. Gasoline/alcohol Mixture.—You may claim
a credit for tax paid on gasoline that you used to
produce a gasoline/alcohol mixture which was
sold or used in your trade or business. The credit
is 4¢ per gallon of gasoline in the mixture if you
purchased the gasoline before 4/1/83 and sold
or used the mixture during the tax year. The credit
is 5¢ per gallon of gasoline in the mixture if you
purchased the gasoline after 3/31/83, paid tax of
9¢ per gallon, and sold or used the mixture during
the tax year.

6. Qualified Taxicab Use.—The ultimate
purchaser may claim a credit for tax paid on
gasoline used after December 31, 1978, and
before October 1, 1984, ina qualified taxicab
providing qualified taxicab service in the
allowable amount of 4¢ a gallon.

A qualified taxicab is a land vehicle that holds
fewer than 10 adults including the driver. 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 (18 mpg for 1978 models, 19mpg for 1979,
20 mpg for 1980, 22 mpg for 1981, 24 mpg for
1982, 26 mpg for 1983, and 27 mpg for 1984). A
taxicab is qualified if the vehicle received or could
have received an exemption from the fuel
‘economy standard for the model year. Fuel
economy standards do not apply for vehicles
acquired before 1979.

Qualified taxicab service means furnishing
nonscheduled land transportation for a fixed fee
in a qualified taxicab. The person operating the
taxicab must be properly licensed as a taxicab
driver and must not be prohibited by company
policy (with the consent of the passengers) from
furnishing ride-sharing.

7. Farming, Commercial, or Helicopter Aviation
Uses.—You may claim a credit for tax paid on
aviation gasoline used in farming, commercial, or
certain helicopter aviation uses in the amount of
12¢ a gallon.

See C.1. for the definition of farm use.

Commercial aviation is the use of an aircraft in
a business of carrying people or property by air
for pay. The use of an aircraft may be considered
noncommercial aviation if the aircraft:

(@)_ Has a maximum certificated 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.

Helicopter uses are:

(a)_ Transporting individuals, equipment, or
supplies in the exploration for, or the
development or removal of, hard minerals, or

(b) The planting, cultivation, cutting, or
transportation of, or caring for, trees (including
logging operations),

but only if the helicopter does 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 pursuant to
the Airport and Airway Improvement Act of 1982
during such use. The use must have occurred
after August 31, 1982.

D. What Special Fuels To Include.—
1. Definitions of Special Fuels. —
(2) Diesel Fuel.—This fuel is a liquid that is:

(1) _ Sold for use ina diesel-powered highway
vehicle; or

(2) Used for fuel in such a highway vehicle.
(This use is not taxable if there was a taxable sale
of the fuel under (1) above.)

(b)_ Special Motor Fuels.—These fuels include
benzol, benzene, naphtha, liquefied petroleum
gas, casinghead and natural gasoline and other
liquid, except kerosene, gas oil, fuel oil, diesel
fuel, or any product taxable under section 4081.
Special motor fuels must be:

(1)_ Sold for use as a fuel in a motor vehicle or
motorboat; or

(2) Used for fuel in a motor vehicle or
motorboat. (This use is not taxable if there was a
taxable sale of the fuel under (1) above.)

2. Uses of Special Fuels. —

(a) Farm Use.—You may claim a credit for tax
paid on fuels as defined in D.1. in the amount of
2¢, 4¢, or 9¢, whichever paid, a gallon that were
for farm use. See instruction C.1. for definition of
farm use.

(b) Commercial Fishing Vessel Use.—You
may claim a credit for tax paid on fuels as defined
in D. 1. in the amount of 2¢ a gallon if purchased
and used before 4/1/83, 4¢ a gallon if purchased
before 4/1/83 and used after 3/31/83, and 9¢ a
gallon if purchased and used after 3/31/83. See
instructions C.2. for definition of commercial
fishing vessel use.

(c) Intercity, Local, or School Bus Uses. —You
may claim credit for tax paid on fuels as defined
in D.1. in the amount of 2¢,4¢, or 9¢, whichever
paid, a gallon that were for intercity, focal and
school bus use. See instruction C.4. for definition
of intercity, local, and school bus uses.

(d) Qualified Taxicab Use.—You may claim a
credit for tax paid on fuels as defined in D.1. in
the amount of 4¢ a gallon. See C.6. for definition
of qualified taxicab use.

(e)_ Farming, Commercial, or Helicopter
Aviation Uses.—You may claim a credit for tax
paid on fuels as defined in D.1. in the amount of
14¢ a gallon that were for farming, commercial,
or helicopter aviation uses. See instruction C.1.
for definition of farming uses and instruction C.7.
for definition of commercial or helicopter aviation
uses,

(f) Nontaxable Uses.

Diesel and Special Motor Fuel.—These fuels
(defined in D.1.) may qualify for a credit in any of
the following cases:

@ You resold the fuel.
@ You used the fuel for a nontaxable purpose.

© You used the fuel for a purpose that was not
the one you bought it for. This other

purpose must make a lower tax rate apply.

If any of these three conditions exist, claim as
credit the figure you get by subtracting (a) the tax
that applies to the actual use of the fuel, from (b)
the tax imposed by section 4041 on the fuel sold
to you.

E, What Lubricating Oil To Include.—You

may claim an income tax credit for tax paid on
lubricating oil that was purchased before 1/7/83
and used in a qualified business use, ina
qualified bus, or ina commercial fishing vessel.

F. What Fuels Not To Include.—Do not include
gasoline lost or destroyed through spillage,
accident, or shrinkage. Such gasoline is not
considered to be used and therefore does not
qualify for credit or refund.

G. Additional Information.—Publication 225,
Farmer's Tax Guide, and Publication 378, Fuel
Tax Credits, are available from the Internal
Revenue Service.