rom 4136

Department of the Treasury
Internal Revenue Service

> Attach this form to

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

your income tax return.

| 1979

Name (as shown on your income tax return)

Social security or employer identification number

Gasoline, Diesel Fuel
and Special Motor Fuels

Lubricating Oil

Number of Rate of | Multiply Cotumn Number of Rate of | Multiply Column
‘Type of Business Use Used Tax Column (8) Used Tax Columi (E)
“a @®) (2) ©) © (a)
1 Menke j , WH Cad Y, [lilddda Ud WN""Jn7pwHYwW)
a Farm (for farming purposes; | a emma crs
ol! A 06
b Commercial fishing vessel (See H
instructions C.4. and D.2.(c)): H
(i) Gasoline . 02
(ii) Diesel fuel or special fuels . 02 | Loy
| lll os
Other i 02) |,
c ; er (specify) uty WLLL. 0s
2 Intercity, local, and school buses |. oe wy i 06
(See instruction C.3.) . é -- z
aM iii: MAA.
‘Aviation Fuels
Fusig Other Than Gasoline Gasoline Rate of Multiply Column
Type of Business Use war ene they | Number TEAS us | “HBS es

5 a Farm (for farming purposes)

WWMM,

(Aerial applicators see instruc-
tion C.1.)

b Aviation (applies only to com-

}s

.07

mercial use as defined in in-
struction D.2.(d)). . . .

ZZ 07

6 Total .

7 Total income tax credit claimed, (Add line ny columns 0) and ©. and rT!

jine 6, column (D).) (See instruction B.) .

* Tax Rate (per gallon used)

Type of Use

Gasoline
(Nonaviation
Use)

Diesel Fuel and Special Motor Fuel

Aviation Fuel
Gasoline

Farm (farming purposes)

2¢ or 4¢ whichever paid

WY 7¢ whichever paid

Other

2¢ or 4¢ whichever paid

re MMs

Aviation (applies only to commercial use as defined

in instruction D.2.(d))

4¢ or 7¢ whichever paid

Instructions
(Section references are to the Internal

Revenue Code unless otherwise specified)

File for any of the first three quarters of your
tax year before the end of the next quarter. Show

separate computations

After December 31, 1978, gasoline,
special fuels, and lubricating oil used
for non-business, off-highway pur-
poses (such as lawnmowers, snow-
mobiles, etc.) are not eligible for credit
or refund.

Form 843 for Quarterly Tax Refund.—You may

want to file a claim for a tax refund instead of a

credit. To do so you must be able to claim
least $1,000 a quarter for any fuel category

lubricating oil. Use Form 843, Claim, for filing.

gasoline or special fuels
refund, for tax paid on

show your computation:

special fuels, and lubricating oils. Don’t include
ing purposes. You may claim a credit only, not a

You may use Form 4136 as a worksheet to

lubricating oil
for a claim on gasoline, » 2nd E:

tion may file
used on a farm for farm-

such fuel. ing:

@ How mai
is, and attach it to your

These include a special fuels, and

as defined in instructions C,

An individual, estate, trust, or corpora-

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-

ny gallons of the fuels are al-

located to each partner.

Form 843,
Don’t include on Form 4136 the credit you
claim on Form 843 for any of the first three quar-

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

B. Year to Include the Credit Resulting

from Business Use of Fuel or Oil.—When

at ters of your tax year.

Or file this form if you

eral excise tax on ct

A. Purpose of Form 4136.—You must

you claim a c

claim credit for Fed- it resulted in

ertain kinds of fuel.

redit or refund, you must in-

clude it in your gross income to the extent

a reduction of your income
(Continued on back)

283-162-2

Form 4136 (1979)


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
prose income for the tax year you receive
it.

2. Accrual Method.—lif 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 use, business nonhighway
uses, intercity, local, and school bus uses,
and commercial fishing vessel uses.

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 torth below
by anyone else, the owner, tenant, or opera-
tor is considered the user of the gasoline.
Exception: Beginning after March 31, 1979,
an aerial applicator is considered to have
used gasoline for farming when performing
the farming tasks under the following
conditions:
© if the applicator is the ultimate pur-
chaser of the gasoline; and
© if the farm owner, tenant, or operator
agrees not to be treated as the user
and ultimate purchaser of the gaso-
ine.

nurseries,

__ 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 life.
Handling, drying, packing, grading,
or storing any horticultural or agri-
cultural commodity before manufac-
ture. This condition occurs only if
the owner, tenant, or operator pro-
duced more than half of the com-
modity 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 for
farming under the following conditions:

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

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

(c) If it is used for personal purposes.

(d) If it is used on the farm of another
person, even though used for farm-
ing.

Often a vehicle will be used on the farm
both for farming and for nonfarming pur-
poses. In these cases, show the number of

(b)

(d)

gallons of gasoline used for each purpose
when claiming credit.

2. Business Nonhighway Uses.—You
may claim a credit for gasoline used for
business nonhighway purposes. Business
nonhighway use does not include gasoline
used in a motorboat or in a highway vehi-
cle 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.—lf 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 after Novem-
ber 30, 1978, 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¢ a gallon. A com-
mercial 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 catch-
ing fish to be sold commercially.

D. What Special Fuels to Include.—
1. Definitions of Special Fuels.—

(a) Diesel Fuel.—this fuel is a liquid
that i:

(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.) The use of diesel fuel is
not taxable if it is taxable as gaso-
line under section 4081.

(b) Special Motor Fuels.—These fuels
include benzol, benzene, naphtha, lique-
fied petroleum gas, casinghead and natu-
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.)

(c) Noncommercial Aviation Fuel.
This is any fuel, such as jet fuel, that is
not taxable under section 4081 but that is
taxable at 7 cents a gallon. This fuel also
includes gasoline that is taxable under sec-
tion 4081 and that is taxed at an additional
3 cents a gallon. The liquid or gasoline
must be:

(1) Sold for use as fuel in an aircraft
that is not used in commercial avia-
tion; or

(2) Used for fuel in such an aircraft.
(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.”

‘Hy US, GOVERNMENT PRINTING OFFICE : 1979-O-283-162

(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 definition of fisheries or
whaling business in C.4.

(d) Commercial Aviation Use.—You may
claim credit for Federal excise taxes on
noncommercial aviation fuels as defined
in D.1.(c) used in commercial aviation. For
this purpose commercial aviation is the use
of an aircraft in a business of carrying
people or property by air for pay. It re-
quires reporting the excise tax on Form
720, Quarterly Federal Excise Tax Return.
The use of an aircraft may be considered
noncommercial aviation if the aircraft:

(1) Has a maximum certificated takeoff
weight of 6,000 pounds or less and
is not operated on an established
line; or

(2) Is owned or leased by a member of
an affiliated group and is not avail-
able for hire to nonmembers.

(e) 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.

@ 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.

£. 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, Federal Fuel Tax Credit or Refund for
Nonhighway and Transit Users, are avail-
able free from the Internal Revenue
Service.

283-162-2