A credit or refund may be allowed for the excise tax on fuel used
in certain buses.
Intercity or Local Bus
An intercity or local bus is a bus used to furnish (for
compensation) passenger land transportation available to the general
public. The bus must be engaged in one of the following activities.
- Scheduled transportation along regular routes regardless of
the size of the bus.
- Nonscheduled operations if the seating capacity of the bus
is at least 20 adults, not including the driver. Vans and similar
vehicles used for van-pooling or taxi service do not qualify.
Available to the general public.
This means you offer service to more than a limited number of
persons or organizations. If a bus operator normally provides charter
operations through travel agencies but has buses available for
chartering by the general public, this service is available to the
general public. A bus does not qualify when its operator uses it to
provide exclusive services to only one person, group, or organization.
Qualified Local Bus
A qualified local bus is a bus meeting all the following
requirements.
- It furnishes (for compensation) intracity passenger land
transportation available to the general public.
- It operates along scheduled, regular routes.
- It has a seating capacity of at least 20 adults (excluding
the driver).
- It is under contract with (or is receiving more than a
nominal subsidy from) any state or local government to furnish the
transportation.
Intracity passenger land transportation.
This is the land transportation of passengers between points
located within the same metropolitan area. It includes transportation
along routes that cross state, city, or county boundaries if the
routes remain within the metropolitan area.
Under contract.
A bus is under contract with a state or local government only if
the contract imposes a bona fide obligation on the bus operator to
furnish the transportation.
More than a nominal subsidy.
A subsidy is more than nominal if it is reasonably expected to
exceed an amount equal to 3 cents multiplied by the number of gallons
of fuel used in buses on subsidized routes. A company that operates
its buses along subsidized and unsubsidized intracity routes may
consider its buses qualified local buses only when the buses are used
on the subsidized intracity routes.
School Bus
A school bus is a bus used for transporting students or school
employees. A school is an educational organization with a regular
faculty and curriculum and a regularly enrolled body of students who
attend the place where the educational activities occur.
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