Business Tax Credit For Fuel Use
You can claim a credit for federal excise tax you paid on fuels you used:
- On a farm for farming purposes (Ex: fuel used to run a tractor while plowing)
- On a boat used for commercial fishing
- For off-highway business use. This is fuel used in a trade or business, or in an income-producing activity like:
- Using stationary machines like:
- Generators
- Compressors
- Power saws
- Similar equipment
- Cleaning
- Using mobile machines like:
- Forklift trucks
- Bulldozers
- Earthmovers
- Using stationary machines like:
Off-highway business use doesn’t include use in a registered highway vehicle.
You must report the credit you claim as income on Schedule F if both of these are true:
- You’re a farmer.
- You claim a deduction for this tax as part of your total fuel expense on Schedule F.
Also, you might deduct the total cost of fuel you use on Schedule C for off-highway business use or commercial fishing. If so, you must report the amount you claim as income on Schedule C.
To claim this credit, complete Form 4136: Credit for Federal Tax Paid on Fuels at www.irs.gov.
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