03/06/2023
**repost***
Fuel Tax Credits must meet one of the following criteria... If neither one of the following applies to you....GET OUT OF THERE.
1. Must be used on a farm, in farming equipment. (lawn equipment is a gray area)
2. Off highway use. (i.e... Bulldozers, Cranes, etc... lawn equipment is a gray area)
3. Export. (exporting of fuel/gasoline). (If you don't know what Export means, get out of there).
4. Commercial fishing boats... (not your little boat that you park at your home)
5. Intercity & local buses. (i.e. the charter/limousine buses that children travel on when they're going to be traveling longer than 1+ hours or the Greyhound bus).
6. In Qualified Local Bus. (i.e. in Birmingham, AL we have the Max Bus. Max is allowed to take the credit, not the people that ride on it).
7. In a bus transporting students and employees of schools. (i.e. school buses).
8. For diesel fuel and kerosene (other than kerosene used in aviation) USED OTHER THAN as a fuel in the propulsion engine of a train or diesel-powered highway vehicle (but not off-highway business use)...
(i e.. the FUEL used in 18 wheelers, rigs, etc... is considered to be used in diesel-powered highway vehicles and therefore are EXCLUDED from the credit... actual expenses &/or standard mileage rate is used to deduct such expenses, however, the fuel tax credit is not allowed for such unless said usage is for #9).
***If you don't understand the meaning of "OTHER THAN"....GET OUT OF THERE!!***
9. Foreign Trade. (the exchange of goods and services between two countries in the international market)... (just because you purchase merchandise from China that doesn't mean you get to claim the credit, if you're a business, you're able to claim a deduction for your shipping expenses, including but not limited to export &/or import cost, but the credit is for the company/entity that is transporting the items from one country to the next).
10. Certain helicopter and fixed-wing aircraft uses... (i. e. just because you own a helicopter or a jet or a member of a jet club, doesn't mean you can take the deduction... you chose that luxury... and if you personally own one for business purposes, it's a deduction, not a fuel tax credit claim.... the fuel tax credit would be for the airlines, or the helicopter used in medical transport, etc...)
11. Exclusive use by a qualified blood collector organization. (i.e. the Redcross Trailers)
12. In a highway vehicle owned by the United States that isn’t used on a highway. (Self Explanatory)
13. Exclusive use by a nonprofit educational organization. (Self Explanatory)
14. Exclusive use by a state, political subdivision of a state, or the District of Columbia. (Self Explanatory)
15. In an aircraft or vehicle owned by an aircraft museum. (Self Explanatory)
16. In military aircraft. (Self Explanatory)
*** The GRAY-AREA can possibly be argued with precise record-keeping, however, I would call the IRS &/or research it a little further prior to making such claim... however, even if the credit is usable for such, if a lawn service owner have 1 reciept that they can't decipher if it was for lawn equipment or the vehicle used to transport the equipment.... it's a deduction vs a credit with me...
When in doubt call the IRS for clarification & notate & document who you speak with/obtain advice/guidance from.
