vom 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

1981

‘Name (as shown on your income tax return)

Social security or employer identification number

| Part | | 2 ne ONotor Frets Lubricating Oil
Type of Business Use api [eager | OR | NER | Ma | Bo
Oo) ®) © © © Cy
1 Nonhighway: YW wma ma
a Farm (for farming purposes) . 202 ||. i
_ ‘el Wl 06
b Commercial fishing vessel (See i
instructions C.4. and De i
(@) Gasoline... ee 02 i
ii) Diesel fuel or special fuels . 02) |, oe
‘ ° «| Walla os
© Other (specify 02},,,
a ee ‘os Lill 2s
2 Intercity, local, and school buses pao WL:
ee instruction C.3.). . . . ‘ Wi, 06 | .
3 Gavoline/aleonet rinture oe 04 / “ Wil WM
@ Aircraft. 6 6 0 ee ts Gidddda ll V7
S Totals... ee ee ee te IS ! V// V/s $ |
Aviation Gasoline
Number of Rate of Multiply Column
Type of Business Use Gallons, Used Tax (A) by Column ()
6 a Farm (for farming purposes) (Aerial applicators see instruc- {
tion C1) 2. + ee ee ee 04
b Aviation (applies only to commercial use as defined in in- i
struction C6)... + +e + + e+ te ts .04 |
TTotal . 6 ee eS
8 Total income tax credit claimed, (Add line 5, columns (C) and (F) and line 7, column (C).) (See in- i
struction B) oe eS i

* Use rate paid or allowable rate if lesser

Instructions

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

At the time we printed this form,
Congress was considering a proposal
that could change the credit computa-
tion for aviation fuel listed on the form.
If the proposal becomes law and ap-
plies to 1981, it must be considered in
figuring your credit for 1981. We will use
news media and other means available
to provide you with information and in-
‘structions on any change.

Paperwork Reduction Act Notice.—
The Paperwork Reduction Act of 1980
says we must tell you why we are collect-
ing this information, how we will use it, and
whether you have to give it to us. We ask
for the information to carry out the Internal
Revenue laws of the United States. 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. 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) on any fuel
category or lubricating oil 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, be-
fore 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 work-
sheet to show your computations and at-
tach 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) for
any of 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 as
a refund.

A. Purpose of Form 4136.—You must
file this form if you claim credit for Fed-
eral excise tax on certain kinds of fuel.
These include gasoline, special fuels, and
lubricating oil as defined in instructions C,
D, and E.

An individual, estate, trust, or corpora-
tion may file this form, but a partnership
may not. However, when a partnership files
Form 1065, U.S. Partnership Return of In-
come, it must include a statement show-
ing:

‘@ How many gallons of the fuels are al-

located to each partner.

@ The types of use, as shown in this

form.

B. Year to Include the Credit Resulting
from Business Use of Fuel or Oil.—When
you claim a credit or refund, you must in-

(Continued on back)

343-164-1

Form 4136 (1981)


clude it in your gross income to the extent
it resulted in a reduction of your income
tax. The year in which you include it de-
pends 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

2. Accrual Method.—If you use the ac-
crual method, figure the amount of the
credit or refund due at the close of your
tax year. Include it in 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 gaso-
line for farm uses, business nonhighway
uses, intercity, local, and school bus uses,
commercial fishing vessel uses, commer-
cial aviation uses, and for mixing with
alcohol.

1. Farm Use.—You may claim a credit
for gasoline used for farming on a trade or
business farm in the United States. Such
farms include the following:

© Stock, dairy, poultry, fur-bearing ani-

mal, and truck farms.

© Plantations, ranches,

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 opera-
tor is considered the user of the gasoline.
There is an exception to this rule. An aerial
applicator is considered to have used gaso-
line for farming when performing the farm-
ing tasks under the following conditions:

© The applicator is the ultimate pur-

chaser of the gasoline; and

@ The farm owner, tenant, or operator

agrees not to be treated as the user
and ultimate purchaser of the gaso-
ine.
i The following tasks are considered farm-
ing:

(a) Cultivating the soil, and raising or

harvesting any horticultural or agri-
cultural commodity. This includes
raising livestock, bees, poultry, fur-
bearing animals, and wildlife.
Handling, drying, packing, grading,
or storing any horticultural or agri-
cultural commodity before manufac-
ture, 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.
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 farm-
ing.

nurseries,

(b)

(d)

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

2. Business Nonhighway Uses.—You
may claim a credit of 2 cents a gallon for
gasoline used for business nonhighway
purposes. Business nonhighway use does
not include gasoline used in a motorboat
or in a highway vehicle that either:

Is registered or required to be regis-
tered 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.

3. Intercity, Local, or School Bus
Uses.—If you are the ultimate purchaser
of gasoline for a bus that provides trans-
portation (1) to the general public for a
fee or (2) to students and school employ-
ees, you may claim a credit for the excise
tax you paid on gasoline used for this
service.

If you provide transportation on inter-
city and local buses on non-scheduled ir-
regular routes, you may take the credit
only if the seating capacity of the bus is at
least 20 adults, not including the driver.

4, Commercial Fishing Vessel Use.
You may claim a credit for excise tax paid
on gasoline used in a commercial fishing
vessel in the amount of 2 cents a gallon. A
commercial fishing vessel is one used in
the fisheries or whaling business and used:

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

© On specific trips exclusively for catch-
ing fish to be sold commercially.

5. Gasoline/alcohol Mixture.—You may
claim a credit for excise tax paid on gaso-
line mixed with alcohol. The alcohol must
have been made from other than petro-
leum, natural gas, or coal. The mixture
must have included at least 10% of 190
proof alcohol and must have been sold or
used in your trade or business.

6. Commercial Aviation Use.—You may
claim credit for excise tax on gasoline (but
not other fuels) used in commercial avia-
tion. For this purpose 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 con-
sidered noncommercial aviation if the air-
craft:

(1) Has a maximum certificated takeoff
weight of 6,000 pounds or less and
is not operated on an established
line; or
Is owned or leased by a member of
an affiliated group and is not avail-
able for hire to nonmembers.

D. What Special Fuels to Include.—
1. Definitions of Special Fuels.—
(a) Diesel Fuel.—This fuel is a liquid
that is:
(1) Sold for use in a diesel-powered
highway vehicle; or
(2) Used for fuel in such a highway vehi-
cle, (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, lique-
fied petroleum gas, casinghead and natu-

(2)

‘$x US, GOVERNMENT PRINTING OFFICE : 1961—O-343-164

ral gasoline and other liquid, except kero-
sene, gas oil, fuel oil, diesel fuel, or any
product taxable under section 4081. Spe-
cial motor fuels must be:

(1) Sold for use as a fuel in a motor ve-

hicle 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 credit
for Federal excise tax on fuels as defined
in D.1. See instruction C.1. for require-
ments for “farm use.”

(b) Intercity, Local, and School Bus
Uses.—You may claim credit for Federal
excise tax on fuels as defined in D.1. See
instruction C.3. for intercity, local, and
school bus requirements.

(c) Commercial Fishing Vessel Use.—
You may claim a credit for Federal excise
tax on fuels as defined in D.1. of 2¢ or 4¢,
whichever paid, that were used in vessels
while employed in the fisheries or whaling
business. See instruction C.4.

(d) Nontaxable Uses. —

(1) 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.

e 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 sub-
tracting (a) the tax that applies to the
actual use of the fuel, from (b) the tax im-
posed by section 4041 on the fuel sold to
you.

E. What Lubricating Oil to Include.—
You may claim an income tax credit for lu-
bricating oil that is used in qualified busi-
ness use, in a qualified bus, or in a com-
mercial fishing vessel. You may include:

® Oil to lubricate plant machinery.

© Oil to lubricate vehicles such as air-
craft, bulldozers, buses, power shov-
els, and farm tractors.

You may not include:

© Cutting oils.

© Used oil.

@ Oil used in a highway motor vehicle,
such as a truck, if used for other than
business nonhighway use. See in-
struction C.2.

© Oil sold free of the Federal excise tax
on lubricating oil. Such oil includes
transformer or insulating oil, some
motor fuel additives, crude neat’s-
foot oil, castor oil, and oils purchased
excise-tax-free by use of an exemp-
tion certificate.

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

G. Additional_Information.—Publication
225, Farmer's Tax Guide, and Publication
378, Fuel Tax Credits—Alcohol, Nonhigh-
way Business Equipment, Buses, and Taxi-
cabs, are available from the Internal Reve-
nue Service.

343-164-1