Federal excise taxes are imposed on certain fuels. This chapter lists the nontaxable uses (described in chapter 2) of each fuel for which a credit
or refund of the excise tax may be allowed to an ultimate purchaser. It also covers the credit or refund allowed gasohol blenders and registered
ultimate vendors of undyed diesel fuel and undyed kerosene.
The ultimate purchaser of compressed natural gas and special motor fuels other than liquefied petroleum gas used in buses, discussed later,
generally does not use taxed fuel for a nontaxable use and no credit or refund would be allowable. These fuels are described in Publication 510.
Type of use table.
Generally, the nontaxable uses listed under each fuel are from Table 1-1, which is contained in the Form 4136 instructions. The
first column of the table is the number you enter on Form 4136 for that type of use.
Table 1-1. Type of Use Table
| No. |
Type of Use |
| 1 |
On a farm for farming purposes |
| 2 |
Off-highway business use (for business use other than in a highway vehicle registered or required to be
registered for highway use) |
| 3 |
Export |
| 4 |
In a boat engaged in commercial fishing |
| 5 |
In certain intercity and local buses |
| 6 |
For diesel fuel, kerosene, and LPG in a qualified local bus |
| 7 |
In a bus transporting students and employees of schools |
| 8 |
For diesel fuel and kerosene used other than as a fuel in the propulsion engine of a train or diesel-powered highway
vehicle (but not off-highway business use) |
| 9 |
In foreign trade |
| 10 |
Certain helicopter and fixed-wing air ambulance uses |
| 11 |
For aviation fuel used other than as a fuel in the propulsion engine of an aircraft |
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