skip navigation

Search Help
Navigation Help

Topic Index
ABCDEFGHI
JKLMNOPQR
STUVWXYZ#

Affordable Care Act
Tax Topic Index

International
Tax Topic Index

FAQs
Forms
Publications
Tax Topics

Comments
About Tax Map

IRS.gov Website
Publication 510
taxmap/pubs/p510-017.htm#en_us_publink1000116957

Undyed Diesel Fuel and Undyed Kerosene (Other Than Kerosene Used in Aviation)(p15)

rule
For conditions to an allowance of a credit or refund on exported dyed diesel fuel and dyed kerosene, see Exported taxable fuel, earlier.
taxmap/pubs/p510-017.htm#en_us_publink1000274823

Ultimate purchasers. (p15)

rule
The following are nontaxable uses of diesel fuel and kerosene (defined earlier) for which a credit or refund may be allowable to an ultimate purchaser.
taxmap/pubs/p510-017.htm#en_us_publink1000116959

Sales by Registered Ultimate Vendors(p15)

rule
The following are the sales for which a credit or refund may be allowable to the registered ultimate vendor only.
taxmap/pubs/p510-017.htm#en_us_publink1000116960

Registered ultimate vendor (state use).(p15)

rule
This is a person that sells undyed diesel fuel or undyed kerosene to a state or local government for its exclusive use (including essential government use by an Indian tribal government). The diesel fuel or kerosene must be purchased by the state without the use of a credit card, issued to the state by the credit card issuer, in order for the ultimate vendor to make the claim. The ultimate vendor must be registered by the IRS. See Registration Requirements, earlier.
taxmap/pubs/p510-017.htm#en_us_publink1000116961

Registered ultimate vendor (blocked pump).(p15)

rule
This is an ultimate vendor that sells undyed kerosene from a blocked pump.
A credit or refund may be allowable to a registered ultimate vendor (blocked pump) if the vendor sold to a buyer undyed kerosene from a blocked pump for use other than as a fuel in a diesel-powered highway vehicle and the vendor had no reason to believe the kerosene would not be used in that manner.
taxmap/pubs/p510-017.htm#en_us_publink1000116962
Blocked pump.(p15)
A blocked pump is a fuel pump that meets all the following requirements.
  1. It is used to make retail sales of undyed kerosene for use by the buyer in any nontaxable use.
  2. It is at a fixed location.
  3. It is identified with a legible and conspicuous notice stating, "UNDYED UNTAXED KEROSENE, NONTAXABLE USE ONLY."
  4. It meets either of the following conditions.
    1. It cannot reasonably be used to dispense fuel directly into the fuel supply tank of a diesel-powered highway vehicle or train.
    2. It is locked by the vendor after each sale and unlocked by the vendor only in response to a buyer's request for undyed kerosene for use other than as a fuel in a diesel-powered highway vehicle or train.
taxmap/pubs/p510-017.htm#en_us_publink1000116963

Registered ultimate vendor (certain intercity and local buses).(p15)

rule
This is an ultimate vendor that sells undyed diesel fuel or undyed kerosene to the ultimate purchaser for use in certain intercity and local buses.
The registered ultimate vendor may make the claim if the ultimate purchaser waives its right to the credit or refund by providing the registered ultimate vendor with a waiver. A sample waiver is included as Model Waiver N in the Appendix. The registered ultimate vendor must have the waiver at the time the credit or payment is claimed.
taxmap/pubs/p510-017.htm#en_us_publink1000274824

Credit Card Purchases.(p15)

rule
If undyed diesel fuel or kerosene is purchased with a credit card issued to a state, the person who extended credit to the state (the credit card issuer) is treated as the person that paid the tax and makes the claim if the credit card issuer:
If the requirements above are not met by the credit card issuer, the credit card issuer must collect the tax from the ultimate purchaser and only the ultimate purchaser may make the claim.