The fuel tax credit is specifically for off-road use of gasoline or diesel. The credit is $0.184 per gallon.
It represents a refund of highway maintenance taxes for fuel that isn’t used on roads.
Only fuel used for business purposes qualifies for the credit – no personal use fuel qualifies.
Typically, this means fuel that is used in machinery and equipment, such as lawn equipment, bulldozers, farm equipment, or boats.
In order to claim the credit, you must maintain a record of how many gallons of fuel are used for off-road purposes. The IRS requires records that include:
– – The number of gallons of fuel purchased and the dates of the purchase, and the name/address of the vendor (for example, a receipt or supplier invoice)
– – A log showing how the fuel was used (for example, a monthly log for each piece of equipment, or a daily log of total fuel use in all equipment)
We claim the credit on your business tax return. If you qualify, please provide your total of gallons used for off-road purposes at tax time so that we can include this credit in your tax return.