United States Credit for Federal Tax Paid on Fuels
(Fuel Tax Credit)


What is the Fuel Tax Credit ?

In United States, a programme called the Credit for Federal Tax Paid on Fuels enables some firms to dollar-for-dollar lower their taxable income based on certain categories of fuel costs.

How Does the Fuel Tax Credit Works ?

Fuel Tax Credit can be used to offset the tax that the American government levies on fuels like gasoline and diesel. The IRS levies a tax on certain fuels at the time of purchase in order to pay for highway maintenance.

Who Qualifies for the Fuel Tax Credit ?

In general, only the ultimate user of a fuel is eligible for a credit for untaxed use. In other words, if you weren’t the one who burned the fuel, then you usually can’t claim the credit.

How to Calculate the Fuel Tax Credit ?

Your tax liabilities are directly decreased by the tax credits calculated on Form 4136. For instance, if you have credits totaling $243, your tax obligation is reduced by the full amount of $243.

How Much is the Fuel Tax Credit ?

Currently, there is a federal tax of $0.184 per gallon on gasoline and $0.244 per gallon on diesel and kerosene. The amount of gallons utilised for nontaxable purposes during the year multiplied by the relevant rate is all that is necessary to determine the fuel tax credit.

click here for list

List of Nontaxable Uses of Fuel

You can claim a credit on your tax return for the tax you paid if you are an individual or business who buys fuel for one of these purposes.

click here to claim

How to Claim the Fuel Tax Credit ?

You can claim the Fuel Tax Credit by filing Form 4136 with your tax return.