Form 4136 Credit for Federal Tax Paid on Fuels

2007 Form 4136, Credit for Federal Tax Paid on Fuels
Purpose: This is the first circulated draft of the 2007 Form 4136 for your review and
comments. See below for a discussion of the major changes.
TPCC Meeting: None, but one may be arranged if requested.
Prior Version: The 2006 Form 4136 is available at:
http://www.irs.gov/pub/irs-pdf/f4136.pdf.
Instructions: The 2007 Instructions for Form 4136 will be circulated at a later date. The
2006 instructions are available at: http://www.irs.gov/pub/irs-pdf/i4136.pdf.
Other Products: Circulations of draft tax forms, instructions, notices, and publications
are posted at: http://taxforms.web.irs.gov/draft_products.html.
Comments: Please email, fax, call, or mail any comments by July 13, 2007, to me and
email the form’s reviewer, Ron Gamble, at [email protected].

Michael Ecker
Tax Law Specialist
SE:W:CAR:MP:T:B:P
NCFB C7-265
Phone: 202-283-0196
Fax: 202-283-7008
Email: [email protected]

Major Changes
•

We deleted the reference to line 9 in the Caution above line 1.

•

Line 2. After September 30, 2007, IRC 4081(d)(2), as modified by the Taxpayer
Relief Act of 1997 (P.L. 105-34), reduces the tax rate on aviation gasoline from
$.194 to $.044 per gallon ($.043 under IRC 4081(a)(2)(A)(ii) plus $.001 LUST
tax). This change affects the credit rates.
2a: This credit is not available for aviation gasoline purchased at $.044
(after September 30, 2007). We added a Caution and the second credit
rate of $.000. IRC 6421(f)(2)
2b: After September 30, 2007, the credit rate is $.043 ($.044 less $.001
LUST). IRC 6421(f)(2)
2c: After September 30, 2007, the credit rate is $.044 (LUST is refundable
on exported fuel). IRC 6421 & 6430

•

Line 3. The credit rate for undyed diesel fuel used in trains (line 3b, CRN 353) is
$.243. This change was made under IRC 4041(a)(1)(C), as amended by P.L. 108357.

•

Line 4. We added lines 4e and 4f to capture claims for kerosene purchased at
$.044 and $.219 (aviation rates). The ultimate purchaser can make a claim on
these lines for kerosene used outside the propulsion system of an aircraft. This is a
general nontaxable use under IRC 6427(l)(1). This change is being made under
Chief Counsel guidance.
Line 4e: Nontaxable use taxed at $.044; Rate: $.043; CRN 377
Line 4f: Nontaxable use taxed at $.219; Rate: $.218; CRN 369

•

Line 5. Lines 9a and 9b move to lines 5c and 5d with minor editorial changes.
After September 30, 2007, IRC 4081(d)(2), as modified by the Taxpayer Relief
Act of 1997 (P.L. 105-34), reduces the tax rate on kerosene used in
noncommercial aviation from $.219 to $.044 per gallon ($.043 under IRC
4081(a)(2)(C)(ii) plus $.001 LUST tax). This change affects the credit rates.
5b: This credit is not available for kerosene purchased at $.044 (after
September 30, 2007). We added a Caution and the second credit rate of
$.000. IRC 6427(l)(4)(A)
5d: After September 30, 2007, the credit rate is $.043 ($.044 less $.001
LUST). IRC 6427(l)(1)

•

Line 8. After September 30, 2007, IRC 4081(d)(2), as modified by the Taxpayer
Relief Act of 1997 (P.L. 105-34), reduces the tax rate on kerosene used in
noncommercial aviation from $.219 to $.044 per gallon ($.043 under IRC
4081(a)(2)(C)(ii) plus $.001 LUST tax). This change affects the credit rates.
8a: This credit is not available for kerosene purchased at $.044 (after
September 30, 2007). We added a Caution and the second credit rate of
$.000. IRC 6427(l)(4)(A)
8c: After September 30, 2007, the credit rate is $.200 ($.244 less $.044).
IRC 6427(l)(4)(B)
8e: After September 30, 2007, the credit rate is $.043 ($.044 less $.001
LUST). IRC 6427(l)(1)

•

We deleted lines 9, 10, and 11 because they are no longer required. Line 9 entries
were moved to line 5. Line 10 was removed because it was a blank line on the
prior form. Line 11 was only applicable to liquefied petroleum gas purchased
before October 1, 2006. All subsequent lines are renumbered.

•

Line 13. After September 30, 2007, IRC 4081(d)(2), as modified by the Taxpayer
Relief Act of 1997 (P.L. 105-34), reduces the tax rate on kerosene used in
noncommercial aviation from $.219 to $.044 per gallon ($.043 under IRC
4081(a)(2)(C)(ii) plus $.001 LUST tax). This change affects the credit rates.
13c: After September 30, 2007, the credit rate is $.043 ($.044 less $.001
LUST). IRC 6427(l)(1)

•

On line 17, Total income tax credit claimed, we deleted the reference to Form
1120-A because this form is obsolete for tax years beginning after 2006.

2
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transmitted all R
text files for this
cycle update?

Date

Form

I.R.S. SPECIFICATIONS
TO BE REMOVED BEFORE PRINTING
INSTRUCTIONS TO PRINTERS
FORM 4136, PAGE 1 of 4
MARGINS: TOP 13 mm (1⁄ 2 "), CENTER SIDES.
PRINTS: HEAD TO HEAD
PAPER: WHITE WRITING, SUB. 20.
INK: BLACK
FLAT SIZE: 406mm (16") 3 279mm (11") folded to 203mm (8") 3 279 mm (11")
PERFORATE: ON FOLD
DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

4136

Action

Date

O.K. to print
Revised proofs
requested

OMB No. 1545-0162

Credit for Federal Tax Paid on Fuels

Name (as shown on your income tax return)

2007

f
o
s
a
7
t
0
f
0
a
2
r
/
D /15 %
6
0
©

Department of the Treasury
Internal Revenue Service

Signature

©

See the separate instructions.

Attachment
Sequence No.

Attach this form to your income tax return.

23

Taxpayer identification number

Caution. Claimant has the name and address of the person who sold the fuel to the claimant and the dates of purchase.
For claims on lines 1c and 2b (type of use 13 and 14), 3d, 4c, and 5, claimant has not waived the right to make
the claim. For claims on lines 1c and 2b (type of use 13 and 14), claimant certifies that a certificate has not
been provided to the credit card issuer.
1

Nontaxable Use of Gasoline

(a) Type of use

a
b
c
d

2

Off-highway business use
Use on a farm for farming purposes

(b) Rate

(c) Gallons

(d) Amount of credit (e) CRN
$

$ .183
.183

Other nontaxable use (see Caution above line 1)

.183

Exported

.184

362
411

Nontaxable Use of Aviation Gasoline

(a) Type of use

a Use in commercial aviation (other than foreign trade)
Caution. This credit is not available for aviation
gasoline taxed at $.044 (purchased after
September 30, 2007).
b Other nontaxable use (see Caution above line 1)
c Exported

(b) Rate

(c) Gallons

(d) Amount of credit (e) CRN
$
354

$ .15/.000*

.193/.043*

324

.194/.044*

412

*This rate applies after September 30, 2007.

3

Nontaxable Use of Undyed Diesel Fuel

Claimant certifies that the diesel fuel did not contain visible evidence of dye.
Exception. If any of the diesel fuel included in this claim did contain visible evidence of dye, attach an explanation and check here ©
(a) Type of use (b) Rate
(c) Gallons
(d) Amount of credit (e) CRN
a Nontaxable use
$
$ .243
360
.243
b Use on a farm for farming purposes
.243
c Use in trains
353

%

d Use in certain intercity and local buses (see Caution
above line 1)
Exported
e

4

.17

350

.244

413

Nontaxable Use of Undyed Kerosene (Other Than Kerosene Used in Aviation)
Claimant certifies that the kerosene did not contain visible evidence of dye.
Exception. If any of the kerosene included in this claim did contain visible evidence of dye, attach an explanation and check here ©
(a) Type of use (b) Rate
(c) Gallons
(d) Amount of credit (e) CRN

a Nontaxable use taxed at $.244
b Use on a farm for farming purposes

$ .243
.243

%

$

346

c Use in certain intercity and local buses (see Caution
above line 1)

d Exported
e Nontaxable use taxed at $.044
f Nontaxable use taxed at $.219
For Paperwork Reduction Act Notice, see the separate instructions.

.17

347

.244

414

.043

377

.218

369

Cat. No. 12625R

Form

4136

(2007)

2
I.R.S. SPECIFICATIONS
TO BE REMOVED BEFORE PRINTING
INSTRUCTIONS TO PRINTERS
FORM 4136, PAGE 2 of 4
MARGINS: TOP 13 mm (1⁄ 2 "), CENTER SIDES.
PRINTS: HEAD TO HEAD
PAPER: WHITE WRITING, SUB. 20.
INK: BLACK
FLAT SIZE: 406mm (16") 3 279mm (11") folded to 203mm (8") 3 279mm (11")
PERFORATE: ON FOLD
DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

Form 4136 (2007)

5

Page

2

Kerosene Used in Aviation (see Caution above line 1)

f
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0
(a) Type
of use

(b) Rate

(c) Gallons

(d) Amount of credit (e) CRN

a Kerosene used in commercial aviation (other than foreign
trade) taxed at $.244

$ .200

$

417

b Kerosene used in commercial aviation (other than foreign
trade) taxed at $.219/.044*

.175/.000*

355

Caution. This credit is not available for kerosene
taxed at $.044 (purchased after September 30, 2007).
c Nontaxable use (other than use by state or local
government) taxed at $.244

.243

346

d Nontaxable use (other than use by state or local
government) taxed at $.219/.044*

.218/.043*

369

*This rate applies after September 30, 2007.

6

Sales by Registered Ultimate Vendors of Undyed Diesel Fuel

Registration No.

©

Claimant certifies that it sold the diesel fuel at a tax-excluded price, repaid the amount of tax to the buyer, or has obtained the written
consent of the buyer to make the claim. Claimant certifies that the diesel fuel did not contain visible evidence of dye.
Exception. If any of the diesel fuel included in this claim did contain visible evidence of dye, attach an explanation and check here
(b) Rate

a Use by a state or local government
b Use in certain intercity and local buses

7

Sales by Registered Ultimate Vendors of Undyed Kerosene (Other
Than Kerosene For Use in Aviation)

(c) Gallons

$ .243

360
350

$

.17

Registration No.

©

(d) Amount of credit (e) CRN

©

Claimant certifies that it sold the kerosene at a tax-excluded price, repaid the amount of tax to the buyer, or has obtained the written consent
of the buyer to make the claim. Claimant certifies that the kerosene did not contain visible evidence of dye.
©
Exception. If any of the kerosene included in this claim did contain visible evidence of dye, attach an explanation and check here
(b) Rate
(c) Gallons
(d) Amount of credit (e) CRN
a Use by a state or local government
$ .243
$
346
b Sales from a blocked pump
.243

%

c Use in certain intercity and local buses

8

Sales by Registered Ultimate Vendors of Kerosene For Use in Aviation

.17

Registration No.

347

©

Claimant sold the kerosene for use in aviation at a tax-excluded price and has not collected the amount of tax from the buyer, repaid
the amount of tax to the buyer, or has obtained the written consent of the buyer to make the claim. See the instructions for additional
information to be submitted.
(a) Type of use (b) Rate
(c) Gallons
(d) Amount of credit (e) CRN
a Use in commercial aviation (other than foreign trade)
taxed at $.219/.044*
$
355
$ .175/.000*

Caution. This credit is not available for kerosene
taxed at $.044 (purchased after September 30,
2007).
b Use in commercial aviation (other than foreign trade)
taxed at $.244

c Nonexempt use in noncommercial aviation
d Other nontaxable uses taxed at $.244
e Other nontaxable uses taxed at $.219/.044*

417

.200
.025/.200*

418
346

.243
.218/.043*

369

*This rate applies after September 30, 2007.
Form

4136

(2007)

2
I.R.S. SPECIFICATIONS
TO BE REMOVED BEFORE PRINTING
INSTRUCTIONS TO PRINTERS
FORM 4136, PAGE 3 of 4
MARGINS: TOP 13 mm (1⁄ 2 "), CENTER SIDES.
PRINTS: HEAD TO HEAD
PAPER: WHITE WRITING, SUB. 20.
INK: BLACK
FLAT SIZE: 406mm (16") 3 279mm (11") folded to 203mm (8") 3 279mm (11")
PERFORATE: ON FOLD
DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

Form 4136 (2007)

9

Alcohol Fuel Mixture Credit

Page

3

©

Registration No.

f
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6
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Claimant produced an alcohol fuel mixture by mixing taxable fuel with alcohol. The alcohol fuel mixture was sold by the claimant to any
person for use as a fuel or was used as a fuel by the claimant.
(b) Rate

a Alcohol fuel mixtures containing ethanol
b Alcohol fuel mixtures containing alcohol (other than ethanol)

10

(c) Gallons of
alcohol

(d) Amount of credit (e) CRN

$

$ .51

.60

Biodiesel or Renewable Diesel Mixture Credit

393
394

©

Registration No.

Claimant produced a mixture by mixing diesel fuel with biodiesel or renewable diesel. The biodiesel used to produce the biodiesel mixture
must meet ASTM D6751 and be registered with the EPA as a fuel and fuel additive under section 211 of the Clean Air Act. The mixture was
sold by the claimant to any person for use as fuel or was used as a fuel by the claimant. Claimant has a certificate from the producer or
importer of the biodiesel which identifies the percentage of biodiesel and agri-biodiesel in the product, and has no reason to believe the
information is false. See the instructions for line 10 to see if you must attach the certificate.
(b) Rate

a Biodiesel (other than agri-biodiesel) mixtures
b Agri-biodiesel mixtures
c Renewable diesel mixtures

11

(c) Gallons of
biodiesel or
renewable
diesel

(d) Amount of credit (e) CRN

$

$ .50

388
390

1.00
1.00

307

Nontaxable Use of Alternative Fuel
Caution. There is a reduced credit rate for use in certain intercity and local buses (type of use 5). See page 4 in the Instructions for Form 4136 for the credit rate.
(c) Gallons
(a) Type of use
(b) Rate
(d) Amount of credit (e) CRN
or gasoline
gallon
equivalents (GGE)
$
Liquefied petroleum gas (LPG)
$ .183
419
.183
420
“P Series” fuels
.183
Compressed natural gas (CNG) (GGE = 126.67 cu. ft.)
421
Liquefied hydrogen
.183
422

a
b
c
d
e Any liquid fuel derived from coal (including peat) through
the Fischer-Tropsch process

f Liquid hydrocarbons derived from biomass
g Liquefied natural gas (LNG)

12

Alternative Fuel Credit and Alternative Fuel Mixture Credit

Registration No.
(b) Rate

a
b
c
d
e

Liquefied petroleum gas (LPG)

$ .50

“P Series” fuels
Compressed natural gas (CNG) (GGE = 121 cu. ft.)

.50

Liquefied hydrogen
Any liquid fuel derived from coal (including peat) through the
Fischer-Tropsch process

.50

f Liquid hydrocarbons derived from biomass
g Liquefied natural gas (LNG)

423
424
425

.243
.243
.243

(c) Gallons
or gasoline
gallon
equivalents (GGE)

©

(d) Amount of credit (e) CRN

$

426
427
428
429

.50

.50

430
431

.50

432

.50
Form

4136

(2007)

2
I.R.S. SPECIFICATIONS
TO BE REMOVED BEFORE PRINTING
INSTRUCTIONS TO PRINTERS
FORM 4136, PAGE 4 of 4
MARGINS: TOP 13 mm (1⁄ 2 "), CENTER SIDES.
PRINTS: HEAD TO HEAD
PAPER: WHITE WRITING, SUB. 20.
INK: BLACK
FLAT SIZE: 406mm (16") 3 279mm (11") folded to 203mm (8") 3 279mm (11")
PERFORATE: ON FOLD
DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

Form 4136 (2007)

13

Registered Credit Card Issuers

Page

Registration No.

©

f
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6
0

a Diesel fuel sold for the exclusive use of a state or local government
b Kerosene sold for the exclusive use of a state or local government

(b) Rate
$ .243
.243

(c) Gallons

4

(d) Amount of credit (e) CRN
$
360
346

c Kerosene for use in aviation sold for the exclusive use of a state or local
government taxed at $.219/.044*.

.218/.043*

369

*This rate applies after September 30, 2007.

14

Nontaxable Use of a Diesel-Water Fuel Emulsion

Caution. There is a reduced credit rate for use in certain intercity and local buses (type of use 5). See page 4 in the Instructions for Form 4136 for the credit rate.
(a) Type of use

a Nontaxable use
b Exported

15

(b) Rate
.198

(b) Rate

16

©

(c) Gallons

(d) Amount of credit (e) CRN
$
310

(c) Gallons

(d) Amount of credit (e) CRN

$ .046

Exported Dyed Fuels
(b) Rate

a Exported dyed diesel fuel
b Exported dyed kerosene
17

(d) Amount of credit (e) CRN
$
309
306

Registration No.

Diesel-Water Fuel Emulsion Blending

Blender credit

(c) Gallons

$ .197

$ .001

415
416

$

.001

Total income tax credit claimed. Add lines 1 through 16, column (d). Enter here and on
Form 1040, line 70 (also check box b on line 70); Form 1120, line 32f(2); Form 1120S, line
23c; Form 1041, line 24g; or the proper line of other returns. ©

17 $
Form

4136

(2007)