om 4136

Department of the Treasury
Internal Revenue Service (0)

Computation of Credit for Federal Tax
on Gasoline and Special Fuels

(And Credit for Purchase of Qualified Diesel-Powered Highway Vehicles)
> Attach this form to your income tax return.

OMB No. 1545-0162

1987

Attachment
Sequence No.26

Name (as shown on your income tax return)

‘Social security or employer identification number

Type of Use

Gasoline and Gasohol, Diesel Fuel, and Other Special Motor Fuels

1 Qualified diesel-powered highway vehicles (See instructions below.) .

2  Nonhighway:
a Farm (for farming purposes) :
(i) Gasoline, gasoline/alcohol mixture
(ii) Diesel fuel, diesel/alcohol mixture .
(iii) Special fuels, special fuels/alcohol mixture
b Commercial fishing vessel (See instructions.):
(i) Gasoline, gasoline/alcohol mixture.
(ii) Diesel fuel, diese!/alcohol mixture
(iii) Special fuels, special fuels/alcohol mixture
¢ Off-highway business (specify) ...
(i) Gasoline, gasoline/alcohol mixture
(ii) Diesel fuel, diesel/alcohol mixture
(iii) Special fuels, special fuels/alcohol mixture
3a Intercity, local, and school buses (See instructions.)
b Qualified local and school buses (See instructions.)
¢ Gasoline used for certain exempt purposes

4 Gasoline/alcohol mixture (gasohol)
5a Qualified methanol and ethanol

b Diesel/alcohol mixture

¢ Special fuels/alcohol mixture .
6 Qualified taxicab

7 Additional tax on fuels (See instructions )

Aviation Fuel:
8 Farm (for farming purposes)

9 Aviation (Applies only to commercial or certain nelicopter uses as defined i in instructions.’ )

10 Total income tax credit claimed (add lines 1 through 9). Enter here and on Form 1040, line 59; Form 1120, line
32f; Form 1120-A, line 28f; Form 1120S, line 23b; Form 1041, line 30b; or the proper line of other returns

(a) Number of (b) Rate (c) Multiply column (a) by
gallons used of tax column (b) (except line 1)
$
7 ]} .
.03/.0333/.09* 1];
.09/.15* |$
03/.045/.09*
TM
,03/.0333/.09*
.09/.15* = |$
.03/.045/.09*
.03/.0333/.09* .
09/.15* |$
.03/.045/.09*
|03/.0333/.09/.12* Yf
15 $
.03/.09*
0566 —($
.06 Mi
06 $
.06
04 $
.001/.0005_|$
i
03/.09/.12/.14* |$
-03/.09/.12/.14* |$

* Use rate paid or allowable rate if less.

Instructions

(Section references are to the Internal Revenue
Code.)
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.
Purpose of Form.—File this form if you claim
credit for Federal excise tax on gasoline and
gasohol, diesel fuel, and other special fuels used
for certain types of business uses or the credit for
diesel-powered highway vehicles. Figure the
credit by multiplying the number of gallons used
by the rate of Federal excise tax paid or the
allowable rate if less. See the instructions for
your particular use of fuel to determine the
applicable rate of tax

An individual, estate, trust, or corporation may
file this form, but a partnership may not.
However, a partnership must attach to Form
1065, U.S. Partnership Return of Income, a
statement 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.
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
gasoline for nonhighway use (including use for

commercial fishing vessels) and intercity, local,
or school bus use in any one of the first three
quarters of the tax year, you may file for a refund
of the tax instead of a credit.

If you paid excise tax of at least $1,000
(include in the $1,000 the credit for purchase of
a qualified diesel-powered highway vehicle) on
special fuels for a nontaxable use, intercity, local
or school bus use (including a qualified local bus),
certain aircraft museums use, and certain
helicopter use in any one of the first three
quarters of the tax year, you may file for a refund.

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 alcohol mixtures. 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 used in the first three quarters. You must
also claim the credit rather than a refund for tax
paid on gasoline, special fuels, or alcohol
mixtures used on a farm for farming purposes.

Do not claim a credit on Form 4136 for any
amount that you previously claimed as a refund,
Year To Include the Credit or Refund in
Income.—When you claim a credit or refund,

you myst include that credit or refund in your
gross income to the extent that it reduced your
income tax. The year you include it depends on
your method of accounting. This rule does not
apply to the credit claimed on line 1 for qualified
diesel-powered highway vehicles.

Cash Method. —If you use the cash method,
include the credit in gross income on your return
for the year you claim 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.

Accrual Method. —If you use the accrual
method, figure 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.

Credit for Purchase of Qualified Diesel-
Powered Highway Vehicles.—if you purchased a
diesel-powered highway vehicle for a use other
than resale and you are the first purchaser, you
may claim a credit of $102 for an automobile and
$198 for a light truck or van. A qualified diesel-
powered highway vehicle is any diesel-powered
highway vehicle that has at least 4 wheels, has a
gross vehicle weight rating of 10,000 pounds or
less, and is registered for highway use in the
United States under the laws of any state. Enter
the credit on line 1 of Form 4136. If you
purchased more than one vehicle that qualifies for
the credit, enter the total of the credits on line 1.

(Continued on next page)

x U. S. GOVERNMENT PRINTING OFFICE: 1987—183-241

Form 4136 (1987)


Form 4136 (1987)

Page 2

What Gasoline To Include.—

Farm Use.—You may claim a credit for
gasoline used for farming ina trade or business
farm in the U.S. The credit for gasoline 1s 9¢ a
gallon and 3¢ a gallon for gasohol. If gasoline was
purchased for blending with alcohol, the credit 1s
3¥%¢ (0333) a gallon. (See instructions for
aviation fuel used for farming.) Such farms include
the following: stock, dairy, poultry, fur-bearing
animals, truck farms, plantations, ranches,
nurseries, ranges, greenhouses, and orchards. See
Publication 225, Farmer's Tax Guide, for
information on who may claim a credit for farming
purposes,

Commercial Fishing Vessel Use.—You may
claim a credit for tax paid on gasoline and a
gasoline/alcohol mixture (gasohol) used in a
commercial fishing vessel. The credit for gasoline
is 9¢ a gallon and 3¢ a gallon for gasohol. If
gasoline was purchased for blending with alcohol,
the credit is 34¢ (.0333) a gallon. A commercial
fishing vessel s 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,
shrimp, or other aquatic life to be sold
commercially.

Off-Highway Business Uses. —You may claim
a credit for tax paid on gasoline and a
gasoline/alcohol mixture (gasohol) used for
off-highway business purposes. The credit for
gasoline 1s 9¢ a gallon and 3¢ a galion for
gasohol. If gasoline was purchased for blending
with alcohol, the credit 1s 3¥4¢ (.0333) a gallon
Off-highway business use does not include
gasoline used in a motorboat that 1s not a
commercial fishing vessel, or in a highway vehicle
that either must be registered for highway use or
is owned by the U.S. and used on the highway.

Intercity, Local, or School Bus Uses. —If you
are the ultimate purchaser of gasoline or a
gasoline/alcohol mixture (gasohol) 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 of 9¢ a gallon and
3¢ a gallon for gasohol. If gasoline was
purchased for blending with alcohol, the credit is
3¥4¢ (.0333) a gallon.

If you provide transportation on intercity and
local buses on nonscheduled irregular routes, you
may take the credit only if the seating capacity of
the bus 1s at least 20 adults, not including the
driver,

Exempt Uses.—E fective January 1, 1988,
you may claim a credit for gasoline or
gasoline/alcohol mixture that is exported, used
bya state or local government, used by a
nonprofit educational organization, or used as
supplies for vessels or aircraft. The credit for
gasoline is 9¢ a gallon and 3¢ a gallon for
gasoline/alcohol mixture. See Publication 510,
Excise Taxes for 1988, for more information

Gasoline Mixed With Alcohol.—You may
claim a credit for tax paid on gasoline that you
used to produce a gasoline/aicohol mixture that
was sold or used in your trade or business. The
credit is 524¢ (.0566) a gallon if you paid 9¢ a
gallon

Qualified Taxicab Use.—The ultimate
purchaser may claim a credit for tax paid on
gasoline (or diesel fuel) used in a qualified taxicab
providing qualified taxicab service in the 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, 19 mpg for 1979,
20 mpg for 1980, 22 mpg for 1981, 24 mpg for
1982, 26 mpg for 1983, 27 mpg for 1984 and

27 mpg for 1985 and later years). 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
nonischeduled land transportation for a fixed fee
in a qualified taxicab. The driver must be properly
licensed as a taxicab driver and must be able to
furnish ride-sharing,
Aviation Fuel—Farming, Commercial, or
Helicopter Uses. —You may claim a credit for
tax paid on aviation gasoline used in farming,
commercial, or certain helicopter aviation uses of
9¢ or 12¢ a gallon, whichever is paid. Also, you
may claim a credit for tax paid on gasohol of 3¢ a
gallon

For the definition of farm use, see Publication

25.

Commercial aviation is the use of an aircraft
ina 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 1s 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, oil, or
gas; or

(b) Planting, cultivati..g, cutting, transporting,
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 under the
Airport and Airway Improvement Act of 1982
during such use.

What Special Fuels To Include. —

(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 ina diesel-powered
highway vehicle unless there was a taxable sale of
the fuel under (1)

(b) Special Motor Fuels.—These fuels
include benzol, benzene, naphtha, liquefied
petroleum gas, casing head and natural gasoline
and other liquids, 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).)

(c) Qualified Methanol and Ethanol Fuels. —
These fuels include any liquid 85% of which
consists of alcohol produced other than from,
petroleum or natural gas. The allowable credit is
6¢ a gallon. Claim the credit on line 5a

(d) Diesel Fuel Mixed With Alcohol.—You
may claim a credit for tax paid on diesel fuel that
is later used in a mixture of diesel fuel and
alcohol if it is at least 10% alcohol. The allowable
credit is 6¢ a gallon.

(e) Special Fuels Mixed With Alcohol.—You
may claim a credit for tax paid on special fuels
that are later used in a mixture of a special fuel
and alcoho! if itis at least 10% alcohol. The
allowable credit is 6¢ a gallon
Uses of Special Fuels.—

Farm Use.—You may claim a credit for tax
paid on diesel fuel of 15€ a gallon and for tax paid
on diesel fuel mixed with alcohol of 9¢ a gallon.
You may claim a credit for tax paid on special
motor fuels of 9¢ a gallon and 3¢ a gallon for
special fuels mixed with alcohol. If 85% of the
special fuel consists of alcohol produced from
natural gas, you may claim a credit for the tax

paid of 9¢ or 4¥¢ a gallon. Also, you may claim a
credit for qualified methanol and ethanol of 3¢
Enter the credit for methanol and ethanol under
special fuels on line 2a(iii). For the definition of
farm use, see Publication 225.

Commercial Fishing Vessel Use.—You may
claim a credit for tax paid on diesel fuel of 15¢ a
gallon and 9¢ a gallon for diesel fuel mixed with
alcohol. You may claim a credit for tax paid on
special motor fuels of 9¢ a gallon and 3¢ a gallon
for special fuels mixed with alcohol. If 85% of the
special fuel consists of alcohol produced from
natural gas, you may claim a credit for the tax
paid of 9¢ or 426 agalion. Also, you may claim a
credit for qualified methanol and ethanol of 3¢
Enter the credit for methanol and ethanol under
special fuels on line 2b(iii). For the definition of
commercial fishing vessel use, see Commercial
Fishing Vessel Use, under What Gasoline To
Include.

Bus Uses.—Generally, you may claim a credit
for tax paid on diesel fuel of 12¢ a gallon for
intercity and local bus use. You may claim a credit
of 15¢ a gallon for tax paid on diesel fuel if the
fuel is used in a qualified local bus or school bus
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 for tax paid
on special motor fuels of 9¢ a gallon. For the
definition of intercity, local, and school bus uses,
see Intercity, Local, or Schoo! Bus Uses, under
What Gasoline To Include.

Farming, Commercial, or Helicopter Aviation
Uses.—You may claim a credit for tax paid on
fuels of 14¢ a gallon that were for farming,
commercial, or helicopter aviation uses. See
instructions for the definitions of commercial or
helicopter aviation uses under What Gasoline To
Include, See Publication 225 for definition of
farming use.

Other Nontaxable Uses—Diesel and Special
Motor Fuel.—These fuels 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 a
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. Enter the net amount of credit on line
2cCii) oF (iii), Form 4136, for off-highway
business credit

Additional Tax on Fuels (Leaking Underground
Storage Tank Taxes).—You may claim a credit
of 1/10 of 1¢ (.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, and in helicopter
aviation described in Helicopter uses and all
commercial aviation. You may also claim a credit
for tax paid on diesel fuel and special motor fuels
of 1/10 of 1¢ (.001) a gallon for use on a farm, in
farming aviation, in commercial fishing vessels,
in qualified local buses and school buses, and in
helicopter aviation described in Helicopter uses.
The amount of credit for qualified ethanol and
methanol is 1/20 of 1¢ (.0005) a gallon.

What Fuels Not To Include.—Fuels lost through
spillage, accident, or shrinkage are not,
considered used and do not qualify for credit or
refund,

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