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Publication 510

Chapter 2
Fuel Tax Credits and Refunds(p14)

Federal excise taxes are imposed on certain fuels as discussed in chapter 1. This chapter lists the nontaxable uses of each fuel and defines the nontaxable uses. Information on the refund of second tax is included. This chapter also explains credits and refunds for the biodiesel or renewable diesel mixture credits, and the alternative fuel mixture and alternative fuel credits.
Information on how to make a claim for credit or refund is included in this chapter and in the instructions for:

Exported taxable fuel.(p14)

The claim rates for exported taxable fuel are listed on Schedule C (Form 720), Schedule 1 (Form 8849), and Form 4136. Taxpayers making a claim for exported taxable fuel must include with their records proof of exportation. Proof of exportation includes:

Gasoline and Aviation Gasoline(p14)


Ultimate Purchasers.(p14)

The following are the uses of gasoline (defined earlier) for which a credit or refund may be allowable to an ultimate purchaser.
The following are the uses of aviation gasoline for which a credit or refund may be allowable to an ultimate purchaser.

Claims by persons who paid the tax to the government.(p14)

Except for sales to nonprofit educational organizations and states and local governments, a credit or refund is allowable to the person that paid the tax to the government if the gasoline was sold to the ultimate purchaser (including an exporter) by either that person or by a retailer and the fuel was exported; used or sold for use as supplies for vessels or aircraft, including military aircraft, commercial fishing, and foreign trade; sold to a qualified blood collector organization; or used or sold for use in the production of Other Fuels. See Filing Claims, later.

Sales by registered ultimate vendors.(p15)

This is an ultimate vendor that sells gasoline or aviation gasoline to any of the following and that is purchased without the use of a credit card.
The registered ultimate vendor may make the claim if the ultimate purchaser did not use a credit card and waives its right to the credit or refund by providing the registered ultimate vendor with a certificate. A sample certificate is included as Model Certificate M in the Appendix. The registered ultimate vendor must have the certificate at the time the credit or refund is claimed.
The ultimate vendor must be registered by the IRS. See Registration Requirements, earlier.

Credit card purchases.(p15)

If gasoline and aviation gasoline are purchased with a credit card issued to a state or local government for its exclusive use (including essential government use by an Indian tribal government), or a nonprofit educational organization for its exclusive use, the person who extended credit to the ultimate purchaser (the credit card issuer) is treated as the person that paid the tax and makes the claim if the credit card issuer:
If the requirements above are not met by the credit card issuer, the credit card issuer must collect the tax from the ultimate purchaser and only the ultimate purchaser may make the claim.

How to make the claim.(p15)

If the claim is made by the credit card issuer, see Schedule C
(Form 720) or Schedule 8 (Form 8849).