(Including Fuel Tax Credits and Refunds)
Publication 510 updates.(p2)
Publication 510 will no longer be updated annually. Instead, Publication 510 will be updated only when there are major changes in the tax law discussed in this publication.taxmap/pubs/p510-000.htm#en_us_publink1000117375
Liquefied gas derived from biomass.(p2)
Liquefied gas derived from biomass is taxable at $.184 per gallon. You are liable for tax on liquefied gas derived from biomass that is delivered into the fuel supply tank of a motor vehicle or motorboat and on certain bulk sales. Report this tax on Form 720 under IRS No. 79.
A claim for nontaxable use of liquefied gas derived from biomass can be made on Schedule C (Form 720) or Schedule 1 (Form 8849) at $.183 per gallon.taxmap/pubs/p510-000.htm#en_us_publink1000117376
Denaturants can be counted only up to 2% of the total volume of alcohol and denaturant combined when figuring the number of gallons used to produce an alcohol fuel mixture. Previously, denaturants could be counted up to 5% of the total volume of alcohol.taxmap/pubs/p510-000.htm#en_us_publink1000117380
Alcohol fuel mixture credit.(p2)
After December 31, 2008, the claim rate for alcohol fuel mixtures containing ethanol is $.45 per gallon. Previously, the claim rate was $.51 per gallon.taxmap/pubs/p510-000.htm#en_us_publink1000117381
Cellulosic biofuel producer credit.(p2)
After December 31, 2008, you may be eligible to claim a credit for each gallon of cellulosic biofuel production. Producers must be registered to claim the credit. For more information, see Registration Requirements in chapter 1 and Cellulosic Biofuel Producer Credit in chapter 2.taxmap/pubs/p510-000.htm#en_us_publink1000117383
Biodiesel mixture credit.(p2)
After December 31, 2008, the claim rate for biodiesel mixtures is $1.00 per gallon. Previously, the claim rate was $.50 per gallon.taxmap/pubs/p510-000.htm#en_us_publink1000117384
After December 31, 2008, the definition and requirements for renewable diesel are modified. For more information, see Renewable Diesel Credits in chapter 2.taxmap/pubs/p510-000.htm#en_us_publink1000117387
Alternative fuel credit and alternative fuel mixture credit.(p2)
You may be eligible to claim the alternative fuel credit and alternative fuel mixture credit for compressed gas derived from biomass and liquefied gas derived from biomass sold or used after October 3, 2008. For more information, see Alternative Fuel Credits in chapter 2.taxmap/pubs/p510-000.htm#en_us_publink1000117388
Alternative fuel used in aviation.(p2)
You may be eligible to claim the alternative fuel credit for alternative fuel sold after October 3, 2008, for use as a fuel in aviation.taxmap/pubs/p510-000.htm#en_us_publink1000117389
Carbon capture requirement.(p2)
A credit for liquid fuel derived from coal (including peat) through the Fischer-Tropsch process can be claimed only if the fuel is derived from coal produced at a gasification facility that meets the carbon capture requirement. For more information, see Alternative Fuel Credits in chapter 2.taxmap/pubs/p510-000.htm#en_us_publink1000117390
Credits for fuel provide incentive for United States production.(p2)
The alcohol fuel credit, alcohol fuel mixture credit, biodiesel credit, biodiesel mixture credit, alternative fuel credit, and alternative fuel mixture credit may not be claimed for alcohol, biodiesel, and alternative fuel that is produced outside the United States for use as a fuel outside the United States. The United States includes any possession of the United States.taxmap/pubs/p510-000.htm#en_us_publink1000117391
Oil spill liability tax.(p2)
After December 31, 2008, the oil spill liability tax rate is $.08 per barrel. Previously, the tax rate was $.05 per barrel.taxmap/pubs/p510-000.htm#en_us_publink1000117392
Air transportation taxes.(p2)
Generally, the tax on use of international air travel facilities and the domestic-segment tax increase annually. See the Instructions for Form 720 for the tax rates.taxmap/pubs/p510-000.htm#en_us_publink1000117393
Arrow shafts, tax rate.(p2)
Generally, the tax on arrow shafts increases annually. See Form 720 for the tax rate.taxmap/pubs/p510-000.htm#en_us_publink1000117394
Arrow shafts, exemption from tax.(p2)
Certain wooden arrows first sold after October 3, 2008, are not taxable. For more information, see Arrow Shafts in chapter 5.taxmap/pubs/p510-000.htm#en_us_publink1000117395
Retail tax on trucks, trailers, and tractors.(p2)
Exclude the cost of certain idling reduction devices and insulation sold or installed after October 3, 2008, from the sales price of the taxable vehicle. For more information, see Retail Tax on Heavy Trucks, Trailers, and Tractors in taxmap/pubs/p510-000.htm#en_us_publink1000117369
Aviation fuels for use in foreign trade.(p2)
Aviation gasoline and kerosene for use in aviation are exempt from the leaking underground storage tank (LUST) tax.taxmap/pubs/p510-000.htm#en_us_publink1000117370
Dyed diesel fuel used in trains.(p2)
The train operator is no longer liable for the leaking underground storage tank (LUST) tax on dyed diesel fuel used in trains. The position holder of the dyed diesel fuel generally is liable for the LUST tax under IRS No. 105.taxmap/pubs/p510-000.htm#en_us_publink1000117371
Inland waterways fuel use.(p2)
Generally, the inland waterways fuel use tax is $.20 (IRS No. 64). However, the leaking underground storage tank (LUST) tax (IRS No. 125) must be paid on any liquid fuel used on inland waterways that is not subject to LUST tax under section 4041(d) or 4081. For example, gallons of Bunker C residual fuel oil must be reported under both IRS Nos. 64 and 125.taxmap/pubs/p510-000.htm#en_us_publink1000117372
Disregarded entities and qualified subchapter S subsidiaries.(p2)
Qualified subchapter S subsidiaries (QSubs) and eligible single-owner disregarded entities are treated as separate entities for excise tax and reporting purposes. QSubs and eligible single-owner disregarded entities must pay and report excise taxes (other than IRS Nos. 31, 51, and 117), register for excise tax activities, and claim any refunds, credits, and payments under the entity's employer identification number (EIN). These actions cannot take place under the owner's taxpayer identification number (TIN). Some QSubs and disregarded entities may already have an EIN. However, if you are unsure, please call the IRS Business and Specialty Tax line at 1-800-829-4933.
Generally, QSubs and eligible single-owner disregarded entities will continue to be treated as disregarded entities for other federal tax purposes (other than employment taxes). Thus, taxpayers filing Form 4136, Credit for Federal Tax Paid on Fuels, with Form 1040, Individual Income Tax Return, can use the owner's TIN. For more information on these regulations, see Treasury Decision (T.D.) 9356. You can find T.D. 9356 on page 675 of Internal Revenue Bulletin 2007-39 at www.irs.gov/pub/irs-irbs/irb07-39.pdf
Registration for certain activities.(p2)
You are required to be registered for certain excise tax activities, such as blending of gasoline, diesel fuel, or kerosene outside the bulk transfer/terminal system. See the instructions for Form 637 for the list of activities for which you must register. Also see Registration Requirements under Fuel Taxes in chapter 1 for information on registration for activities related to fuel. Each business unit that has, or is required to have, a separate employer identification number must be registered.
To apply for registration, complete Form 637 and provide the information requested in its instructions. If your application is approved, you will receive a Letter of Registration showing the activities for which you are registered, the effective date of the registration, and your registration number. A copy of Form 637 is not a Letter of Registration. taxmap/pubs/p510-000.htm#en_us_publink1000116788
Photographs of missing children.(p2)
The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child.
This publication covers the excise taxes for which you may be liable and which are reported on Form 720. It also covers fuel tax credits and refunds.taxmap/pubs/p510-000.htm#en_us_publink1000116789
We welcome your comments about this publication and your suggestions for future editions.
You can write to us at the following address:
Internal Revenue Service
Tax Products Coordinating Committee
1111 Constitution Ave. NW, IR-6526
Washington, DC 20224
We respond to many letters by telephone. Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence.
You can email us at *firstname.lastname@example.org.
The asterisk must be included in the address. Please put "Publications Comment" on the subject line. Although we cannot respond individually to each email, we do appreciate your feedback and will consider your comments as we revise our tax products.
You may want to see:
Publication 509 Tax Calendars Form (and Instructions) 11-C: Occupational Tax and Registration Return for Wagering 637: Application for Registration (For Certain Excise Tax Activities) 720: Quarterly Federal Excise Tax Return 720X: Amended Quarterly Federal Excise Tax Return 730: Monthly Tax Return for Wagers 1363: Export Exemption Certificate 2290: Heavy Highway Vehicle Use Tax Return 2290(SP): Declaración del Impuesto sobre el Uso de Vehículos Pesados en las Carreteras 2290(FR): Déclaration d'Impôt sur l'Utilisation des Véhicules Lourds sur les Routes 4136: Credit for Federal Tax Paid on Fuels 6197: Gas Guzzler Tax 6478: Alcohol and Cellulosic Biofuel Fuels Credit 6627: Environmental Taxes 8849: Claim for Refund of Excise Taxes, and Schedules 1–3, 5, 6, and 8 8864: Biodiesel and Renewable Diesel Fuels Credittaxmap/pubs/p510-000.htm#en_us_publink1000116790
- Form 720-TO, Terminal Operator Report
- Form 720-CS, Carrier Summary Report
See How To Get Tax Help in chapter 15 for information about ordering forms and publications.taxmap/pubs/p510-000.htm#en_us_publink1000116791taxmap/pubs/p510-000.htm#en_us_publink1000116792
In addition to the taxes discussed in this publication, you may have to report certain other excise taxes.
For tax forms relating to alcohol and tobacco, visit the Alcohol and Tobacco Tax and Trade Bureau website at www.ttb.gov.
You report the federal excise tax on the use of certain trucks, truck tractors, and buses used on public highways on Form 2290, Heavy Highway Vehicle Use Tax Return. The tax applies to highway motor vehicles with a taxable gross weight of 55,000 pounds or more. Vans, pickup trucks, panel trucks, and similar trucks generally are not subject to this tax. taxmap/pubs/p510-000.htm#en_us_publink1000116794
A Spanish version (Formulario 2290(SP)) and a French version (Formulaire 2290(FR)) and separate instructions for each are also available. See How To Get Tax Help in taxmap/pubs/p510-000.htm#en_us_publink1000116795
Generally, you must prove that you paid your heavy highway vehicle use tax to register your taxable vehicle with your state motor vehicle department or to enter the United States in a Canadian or Mexican registered taxable vehicle. Generally, a copy of Schedule 1 (Form 2290) is stamped by the IRS and returned to you as proof of payment.
If you have questions on Form 2290, see How To Get Tax Help in chapter 15, or you can call the Form 2290 call site at 1-866-699-4096 (toll free) from the United States, and 1-859-669-5733 (not toll free) from Canada and Mexico. The hours of service are 8:00 a.m. to 6:00 p.m. Eastern time.
The information on wagering tax can be found in the instructions for Form 730, Tax on Wagering, and Form 11-C, Occupational Tax and Registration Return for Wagering.