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taxmap/pubs/p510-000.htm#en_us_publink1000116774
Publication 510

Excise Taxes

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(Including Fuel Tax Credits and Refunds)

Section references are to the Internal Revenue Code unless otherwise noted.

What's New(p2)


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One-time claims for calendar year 2015.(p2)
The section 6426 credits for biodiesel mixtures, renewable diesel mixtures, and alternative fuels, which expired at the end of 2014, were retroactively reinstated for calendar year 2015. You can make a one-time claim for credits for sales or uses of these fuels in calendar year 2015. For information on how to make a one-time claim, see Notice 2016-05, available at www.irs.gov/irb/2016-06_IRB/ar08.html, and Schedule 3 (Form 8849).
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Alternative fuel mixture credits for 2015.(p2)
The credit for alternative fuel mixtures also expired at the end of 2014, and is reinstated for calendar year 2015. If you want to make a claim for the alternative fuel mixture credit for 2015 you must file Form 720X, Amended Quarterly Federal Excise Tax Return. For information on how to make a claim, see Notice 2016-05.
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Suspension of section 4191 medical device tax.(p2)
The medical device tax no longer applies to sales for two years beginning January 1, 2016, through December 31, 2017. For information on the tax for sales before January 1, 2016, see T.D. 9604 and Notice 2012-77.
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Alternative liquid fuel and compressed natural gas (CNG) gasoline gallon equivalent (GGE) and diesel gallon equivalent (DGE).(p2)
For sales or uses of fuel after December 31, 2015, for taxation under section 4041:
  • Liquefied petroleum gas (LPG) has a GGE of 5.75 pounds or 1.353 gallons of LPG,
  • Liquefied natural gas (LNG) has a DGE of 6.06 pounds or 1.71 gallons of LNG, and
  • CNG has a GGE of 5.66 pounds or 123.57 cubic feet of CNG.
Example. 10,000 gallons of LNG ÷ 1.71 = 5,848 DGE × $0.243 = $1,421.06 tax.
See Alternative fuel (IRS Nos. 112, 118, and 120–124), and Line 6. Nontaxable Use of Alternative Fuel, in the Instructions for Form 720.
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Biodiesel, renewable diesel mixture, alternative fuel, and alternative fuel mixture credits.(p2)
The section 6426 credits and section 6427 payments for biodiesel, renewable diesel mixtures, alternative fuel, and alternative fuel mixtures are extended retroactively to January 1, 2015, and through 2016. See Schedule C. Claims, in the Instructions for Form 720.
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Alternative liquid fuel GGE and DGE claim rates.(p2)
For sales or uses of fuel after December 31, 2015, LPG has a claim rate (or GGE) of 5.75 pounds or 1.353 gallons of LPG; LNG has a claim rate (or DGE) of 6.06 pounds or 1.71 gallons of LNG.
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Use of international air travel facilities for 2016.(p2)
For calendar year 2016, the tax on the amount paid for international flights is $17.80 per person for flights that begin or end in the United States. The tax continues to be $8.90 per person for domestic segments that begin or end in Alaska or Hawaii (applies only to departures). See Air Transportation Taxes, in the Instructions for Form 720.
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Section 4371(3) tax on foreign reinsurance premiums no longer applies.(p2)
The 1% tax no longer applies to premiums paid on a policy of reinsurance issued by one foreign reinsurer to another foreign insurer or reinsurer, under the situations described in Rev. Rul. 2008-15. See Foreign Insurance Taxes, in the Instructions for Form 720.
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Arrow shafts.(p2)
For calendar year 2016, the tax on arrow shafts continues to be $.49 per arrow shaft.

Future Developments(p2)


The IRS has created a page on IRS.gov that includes information about Publication 510 at www.irs.gov/pub510. Information about any future developments will be posted on that page.

Reminders(p2)


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Publication 510 updates.(p2)
Publication 510 isn't updated annually. Instead, it will be updated only when there are major changes in the tax law.
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Reducing your excise tax liability.(p2)
For federal income tax purposes, reduce your section 4081 excise tax liability by the amount of excise tax credit allowable under section 6426(c) and your section 4041 excise tax liability by the amount of your excise tax credit allowable under section 6426(d), in determining your deduction for those excise taxes or your cost of goods sold deduction attributable to those excise taxes.
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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.
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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 most excise tax activities, and claim any refunds, credits, and payments under the entity's employer identification number (EIN). These actions can't 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).
For more information on these regulations, see Treasury Decision (T.D.) 9356, T.D. 9462, and T.D. 9596. You can find T.D. 9356 on page 675 of Internal Revenue Bulletin (I.R.B.) 2007-39 at
www.irs.gov/pub/irs-irbs/irb07-39.pdf;
T.D. 9462 on page 504 of I.R.B. 2009-42 at
www.irs.gov/pub/irs-irbs/irb09-42.pdf;
and T.D. 9596 on page 84 of I.R.B. 2012-30 at
www.irs.gov/pub/irs-irbs/irb12-30.pdf.
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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 isn't a Letter of Registration.
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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.

taxmap/pubs/p510-000.htm#en_us_publink1000270863Introduction

This publication covers the excise taxes for which you may be liable and which are reported on Form 720 and other forms. It also covers fuel tax credits and refunds. For information on fuel credits against income tax (the section 40 credits for the production of cellulosic biofuel and second generation biofuel, and the section 40A credit for biodiesel and renewable diesel used as fuel) see the instructions for Form 6478 and Form 8864, Biodiesel and Renewable Diesel Fuels Credit.
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Comments and suggestions.(p3)

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We welcome your comments about this publication and your suggestions for future editions.
You can send us comments from www.irs.gov/formspubs. Click on "More Information," then on "Give Us Feedback."
Or you can write to:

Internal Revenue Service
Tax Forms and Publications
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.
Although we can't respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products.

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Useful items

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
 4136: Credit for Federal Tax Paid on Fuels
 6197: Gas Guzzler Tax
 6478: Biofuel Producer 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 Credit
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Information Returns(p3)

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See How To Get Tax Help in chapter 17 for information about ordering forms and publications.
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Guidance(p3)

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Excise Taxes Not Covered(p3)

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In addition to the taxes discussed in this publication, you may have to report certain other excise taxes.
For tax forms relating to alcohol, firearms, and tobacco, visit the Alcohol and Tobacco Tax and Trade Bureau website at www.ttb.gov.
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Heavy highway vehicle use tax.(p3)

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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.
Note. A Spanish version (Formulario 2290(SP)) is also available. See How To Get Tax Help in chapter 17.
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Registration of vehicles.(p3)

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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.
Deposit
If you have questions on Form 2290, see its separate instructions, 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.
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Wagering tax and occupational tax.(p3)

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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.