Credit for Federal Tax Paid on Fuels

2007 Instructions for Form 4136
Purpose: This is the first circulated draft of the 2007 Instructions for 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 Instructions for Form 4136 are available at:
http://www.irs.gov/pub/irs-pdf/i4136.pdf.
Form: The 2007 Form 4136 was circulated earlier at:
http://taxforms.web.irs.gov/Products/Drafts/2007-2/07f4136_d1.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 August 17, 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
Page 1
• What’s New highlights the following changes.
1. Aviation fuel used outside the propulsion system of an aircraft.
Ultimate purchasers can use lines 2b (aviation gasoline) and 4a, 4e, or 4f
(kerosene) to make a claim for aviation fuel 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 guidance from Chief
Counsel, PSI:7.
2. Aviation gasoline. After September 30, 2007, the credit rates for
nontaxable use of aviation gasoline change because the tax rate changes
under IRC 4081(d)(2), as modified by the Taxpayer Relief Act of 1997
(P.L. 105-34).
3. Credit for kerosene used in noncommercial aviation. Ultimate
purchasers can make a claim on lines 5c and 5d for kerosene used in

4.

5.

6.

7.

•

noncommercial aviation. This change is made per section 420 of the Tax
Relief and Health Care Act of 2006 and IRC 6427(l)(4).
Kerosene for use in aviation. After September 30, 2007, the credit rates
for kerosene for use in noncommercial aviation change because the tax
rate changes under IRC 4081(d)(2), as modified by the Taxpayer Relief
Act of 1997 (P.L. 105-34).
Qualified blood collector organizations. Qualified blood collector
organizations are exempt users of fuel taxed under section 4081. This
change is made pursuant to section 1207 of the Pension Protection Act of
2006 (P.L. 109-280). Notice 2006-92, section 7, contains guidance on
these exempt organizations.
Type of use table. We revised the table to delete 17—For use in the
production of alternative fuel. This change was made because section
6416(a)(4) changes who the claimant is under section 6416(b)(2)(F). This
change was coordinated with Chief Counsel, PSI:7.
Undyed diesel fuel used in trains. After December 31, 2006, the claim
rate for undyed diesel fuel used in trains is $.243. This change is made per
IRC 4041(a)(1)(C)(ii)(III) and 4041(d).

Under Reminders, we add the following topics.
1. Exported taxable fuel. This topic was discussed under What’s New in
the 2006 Instructions for Form 4136.
2. Registered credit card issuers. This topic was discussed under What’s
New in the 2006 Instructions for Form 4136.
3. Registered credit card issuers and registered ultimate vendors. This
topic was discussed under What’s New in the 2006 Instructions for Form
4136.
4. Undyed diesel fuel and undyed kerosene for farming purposes. This
topic was discussed under What’s New in the 2006 Instructions for Form
4136.

Page 2
• Under Additional Information, we added Notice 2007-37. Notice 2007-37
contains guidance on renewable diesel and renewable diesel mixtures.
•

Under Type of Use Table, we deleted 17—For use in the production of
alternative fuel. This change was made because section 6416(a)(4) changes who
the claimant is under section 6416(b)(2)(F). This change was coordinated with
Chief Counsel, PSI:7.

Page 3
• Line 2. Nontaxable Use of Aviation Gasoline
1. We added a Caution because 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
on line 2a, 2b, and 2c.

2. Under Allowable uses, we added type of use 2 for line 2b. Ultimate
purchasers can use lines 2bto make a claim for aviation fuel 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 guidance from Chief Counsel,
PSI:7.
•

Line 4. Nontaxable Use of Undyed Kerosene (Other Than Kerosene Used in
Aviation)
1. Under Allowable uses, we instructions for 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 guidance from Chief Counsel,
PSI:7.

•

Line 5. Kerosene Used In Aviation
1. We added a Caution because 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 on lines 5b and 5d.
2. The instructions for line 9, with editorial changes, were moved because line 9
claims are now made on lines 5c and 5d.

Page 4
• Line 8a and 8b. Sales By Registered Ultimate Vendors of Kerosene For Use
in Commercial Aviation (Other Than Foreign Trade)
1. We added a Caution because 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 rate on line 8a.
•

Line 8c, 8d, and 8e. Sales By Registered Ultimate Vendors of Kerosene Sold
For Use in Noncommercial Aviation.
1. We added a Caution because 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 rate on lines 8c and 8e.
2. We updated Claimant to be consistent with the Instructions for Form 720.

Page 5
• We deleted the instructions for 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.
•

We added Information for Claims on Lines 9, 10, and 12 to discuss the order in
which claims must be made.

•

Line 10. Biodiesel or Renewable Diesel Mixture Credit
1. We updated Claimant to include the requirements for renewable diesel used
in a renewable diesel mixture. The requirements are described in Notice 200737.
2. We updated Certificate to discuss the certificate requirements for a renewable
diesel mixture. The requirements are described in Notice 2007-37.

•

Line 12. Alternatve Fuel Credit and Alternative Fuel Mixture Credit
1. We updated Claimant to be consistent with the Instructions for Form 720.

•

Line 13. Registered Credit Card Issuers
1. We added a Caution because 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 rate on line 13c.

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Instructions for Form 4136

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2007

Department of the Treasury
Internal Revenue Service

Instructions for Form 4136
Section references are to the Internal Revenue Code unless
otherwise noted.

What’s New
Aviation fuel used outside the propulsion system of
an aircraft. Use line 2b to make a claim for aviation
gasoline used outside the propulsion system of an
aircraft. Depending on the tax rate of the kerosene, use
line 4a, 4e, or 4f to make a claim for kerosene used
outside the propulsion system of an aircraft. For more
information, see Line 2. Nontaxable Use of Aviation
Gasoline and Line 4. Nontaxable Use of Undyed
Kerosene (Other Than Kerosene Used in Aviation).
Aviation gasoline. After September 30, 2007, the credit
rates for nontaxable use of aviation gasoline change
because the tax rate changes to $.044. For more
information, see Line 2. Nontaxable Use of Aviation
Gasoline.
Credit for kerosene used in noncommercial aviation.
Ultimate purchasers of kerosene may claim a credit for
kerosene used in noncommercial aviation (other than
nonexempt, noncommercial aviation and exclusive use
by a state, political subdivision of a state, or the District of
Columbia) on lines 5c or 5d if they have not waived the
right to the claim. Previously, these claims were made on
line 9.
Kerosene for use in aviation. After September 30,
2007, kerosene for use in noncommercial aviation (taxed
at $.219) is taxed at $.044. Therefore, the credit rates
shown on lines 5b, 5d, 8a, 8c, 8e, and 13c change after
September 30, 2007. For more information, see the
instructions for each line.
Qualified blood collector organizations. Qualified
blood collector organizations are exempt users of fuel
taxed under section 4081. Two conditions must be met to
apply for the credit on Form 4136.
1. The fuel must be used for the organization’s
exclusive use in the collection, storage, or transportation
of blood.
2. The organization must be registered by the IRS. To
apply for registration, see Form 637, Application for
Registration (For Certain Excise Tax Activities).
Type of use table. The Type of Use Table on page 2
has been revised. Some uses listed in the table do not
apply to Form 4136. See the specific line instructions for
the allowable uses.
Undyed diesel fuel used in trains. The claim rate for
undyed diesel fuel used in trains (line 3c) is $.243.
Previously, the claim rate was $.22.

Reminders
Exported taxable fuel. A credit for exported taxable
fuel can be claimed on lines 1d, 2c, 3e, 4d, 16a, and 16b
as applicable.
Registered credit card issuers. Claims for sales of
certain taxable fuel to state and local governments can
be made by registered credit card issuers if certain
conditions are met. See Line 13. Registered Credit Card
Issuers for more information.
Registered credit card issuers and registered
ultimate vendors. You cannot make a claim on Form
4136 for gasoline and aviation gasoline sold to a state or
local government or a nonprofit educational organization.
Instead, these claims must be made on Schedule C
(Form 720) or the appropriate schedule of Form 8849.
Undyed diesel fuel and undyed kerosene for farming
purposes. Ultimate purchasers use lines 3b and 4b to
make these claims. Registered ultimate vendor refund
claims for undyed diesel fuel and undyed kerosene (other
than kerosene for use in aviation) sold for use on a farm
for farming purposes have been eliminated.

General Instructions
Purpose of Form
Use Form 4136 to claim a credit for certain nontaxable
uses (or sales) of fuel during the income tax year. Also
use Form 4136 if you are claiming the alternative fuel
credit, a blender claiming a credit for a diesel-water fuel
emulsion, or a producer claiming a credit for an alcohol
fuel mixture, biodiesel or renewable diesel mixture, or an
alternative fuel mixture.
Instead of waiting to claim an annual credit on Form
4136, you may file:
• Form 8849, Claim for Refund of Excise Taxes, to claim
a periodic refund; or
• Form 720, Quarterly Federal Excise Tax Return, to
claim a credit against your taxable fuel liability.

!

CAUTION

You cannot claim any amounts on Form 4136 that
you claimed on Form 8849 or Schedule C (Form
720).

Partnerships. Partnerships (other than electing large
partnerships) cannot file this form. Instead, they must
include a statement on Schedule K-1 (Form 1065),
Partner’s Share of Income, Deductions, Credits, etc.,
showing the allocation to each partner specifying the
number of gallons of each fuel used during the tax year,
the applicable credit per gallon, the nontaxable use or
sale, and any additional information required to be
submitted.

Additional Information
• Publication 510, Excise Taxes for 2007, has more

information on nontaxable uses and the definitions of

Cat. No. 48249T

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• A certificate by the agent or representative of the

terms, such as ultimate vendor and blocked pump. Pub.
510 also contains information on fuel tax credits and
refunds previously in Pub. 378.
• Publication 225, Farmer’s Tax Guide, also includes
information on credits and refunds for the federal excise
tax on fuels applicable to farmers.
• Notice 2005-4. You can find Notice 2005-4 on page
289 of Internal Revenue Bulletin 2005-2 at www.irs.gov/
pub/irs-irbs/irb05-02.pdf.
• Notice 2005-62. You can find Notice 2005-62 on page
443 of Internal Revenue Bulletin 2005-35 at www.irs.gov/
pub/irs-irbs/irb05-35.pdf.
• Notice 2005-80. You can find Notice 2005-80 on page
953 of Internal Revenue Bulletin 2005-46 at www.irs.gov/
pub/irs-irbs/irb05-46.pdf.
• Notice 2006-92. You can find Notice 2006-92 on page
774 of Internal Revenue Bulletin 2006-43 at www.irs.gov/
pub/irs-irbs/irb06-43.pdf.
• Notice 2007-37. You can find Notice 2007-37 on page
1002 of Internal Revenue Bulletin 2007-17 at www.irs.
gov/pub/irs-irbs/irb07-17.pdf.

export carrier showing accrual exportation of the fuel,
• A certificate of lading signed by a customs officer of
the foreign country to which the fuel is exported, or
• A statement of the foreign consignee showing receipt
of the fuel.

Type of Use Table
The following table lists the nontaxable uses of fuels. You
must enter the number from the table in the Type of use
column on Form 4136.
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) (other
than use in mobile machinery)

3

Export

Recordkeeping

4

In a boat engaged in commercial fishing

You must keep records to support any credits claimed on
this return for at least 3 years from the date the return is
due or filed, whichever is later.

5

In certain intercity and local buses

6

In a qualified local bus

7

In a bus transporting students and employees of
schools (school buses)

8

For diesel fuel and kerosene (other than
kerosene used in aviation) 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 aircraft uses

11

Exclusive use by a qualified blood collector
organization

Complete all information requested for each claim you
make. You must enter the number (when requested) from
the Type of Use Table on page 2, the number of gallons
or gasoline gallon equivalents (CNG only), and the
amount of credit. If you need more space for any line (for
example, for more types of use), prepare a separate
sheet using the same format as the line.

12

In a highway vehicle owned by the United States
that is not used on a highway

13

Exclusive use by a nonprofit educational
organization

14

Exclusive use by a state, political subdivision of
a state, or the District of Columbia

Attach separate sheets showing any additional
information required for your claim such as the
computation of the amount to be credited. Be sure to
write your name and taxpayer identification number (TIN)
on each sheet.

15

In an aircraft or vehicle owned by an aircraft
museum

16

In military aircraft

Including the Fuel Tax Credit in Income
You must include in your gross income the amount of the
credit from line 17 if you took a deduction on your tax
return that included the amount of the taxes and that
deduction reduced your income tax liability. See Pub. 510
for more information.

Specific Instructions
How To Make A Claim

Types of use 13 and 14. Generally, claims for sales of
diesel fuel, kerosene, kerosene for use in aviation,
gasoline, or aviation gasoline for the exclusive use of a
state or local government (and nonprofit educational
organization for gasoline or aviation gasoline) must be
made following the order below.
1. By the registered credit card issuer if the state or
local government (or nonprofit educational organization if
applicable) used a credit card and the credit card issuer
meets the four requirements discussed in Line 13.
Registered Credit Card Issuers on page 5.
2. By the registered ultimate vendor if the ultimate
purchaser did not use a credit card and waives his or her
right to make the claim and the registered credit card
issuer cannot make the claim.

Amount of credit. Generally, multiply the rate by the
number of gallons. For lines 9 and 10, enter the number
of gallons of alcohol or biodiesel/renewable diesel. For
lines 11 and 12, enter the number of gallons or gasoline
gallon equivalents (CNG only). Enter the result (or the
combined result as indicated by the brackets) in the
amount of credit column. Include amounts from any
separate sheets.
Exported taxable fuel. The claim rates for exported
taxable fuel are listed on lines 1d, 2c, 3e, 4d, 16a, and
16b. Taxpayers making a claim for exported taxable fuel
must include with their records proof of exportation. Proof
of exportation includes:
• A copy of the export bill of lading issued by the
delivering carrier,
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3. By the ultimate purchaser if the ultimate purchaser
used a credit card and neither the registered credit card
issuer nor the registered ultimate vendor is eligible to
make the claim.

For line 3e, the diesel fuel must have been exported
during the period of claim (Type of use 3). See Exported
taxable fuel on page 2.

Line 4. Nontaxable Use of Undyed Kerosene
(Other Than Kerosene Used in Aviation)

Additional requirements that must be met are in Pub.
510.

Claimant. The ultimate purchaser of the kerosene is the
only person eligible to make this claim.
Allowable uses. For line 4a, the kerosene must have
been used during the period of claim for type of use 2, 6,
7, 8, 11, 13, 14, or 15. Line 4b does not include claims for
kerosene used in aviation for farming purposes; instead,
see line 5. For line 4c, the claimant has not waived the
right to make a claim. See Types of use 13 and 14 on
page 2. Type of use 8 includes use as heating oil and
use in a motorboat.
For line 4d, the kerosene must have been exported
during the period of claim (Type of use 3). See Exported
taxable fuel on page 2.
For lines 4e and 4f, the kerosene must have been
used during the period of claim for type of use 2.

An income tax credit for gasoline and aviation
gasoline can be claimed on Form 4136 by the
CAUTION ultimate purchaser only. Claims by registered
credit card issuers and registered ultimate vendors for
gasoline and aviation gasoline sold to a state or local
government or nonprofit educational organization must
be made on Schedule C (Form 720) or Form 8849.

!

Line 1. Nontaxable Use of Gasoline
Claimant. The ultimate purchaser of the gasoline is the
only person eligible to make this claim.
Allowable uses. A claim cannot be made for personal
use of any fuel on line 1. Also, for lines 1a and 1c, a
claim cannot be made for any use in a motorboat, other
than commercial fishing.

You may claim a credit for the tax on undyed
TIP kerosene you purchased (other than from a
blocked pump) and used in your home during
2007 for heating, lighting, or cooking.
To claim the credit on line 4a for home use:
1. Enter 8 in col. (a).
2. Enter the number of gallons of kerosene in col. (c).
3. Multiply the gallons in col. (c) by $.243. Enter the
result in col. (d).
4. If this is the only fuel tax credit you are claiming,
enter the amount from col. (d) on:
a. Line 17 of Form 4136, and
b. Line 70 of Form 1040. Also, check box “b” on line
70.

For line 1a, the gasoline must have been used during
the period of claim for a business use other than in a
highway vehicle registered (or required to be registered)
for highway use (Type of use 2).
For line 1b, the gasoline must have been used during
the period of claim on a farm for farming purposes (Type
of use 1).
For line 1c, the gasoline must have been used during
the income tax year for type of use 4, 5, 7, 11, 13, 14, or
15. For type of use 13 or 14, claimant has not waived the
right to make a claim. See Types of use 13 and 14 on
page 2.
For line 1d, the gasoline must have been exported
during the period of claim (Type of use 3). See Exported
taxable fuel on page 2.

Line 5. Kerosene Used in Aviation

Line 2. Nontaxable Use of Aviation Gasoline

!

The credit rates for lines 5b and 5d change after
September 30, 2007.

CAUTION

!

The credit rates for lines 2a, 2b, and 2c change
after September 30, 2007.

Claimant. Claimant certifies that the right to make the
claim has not been waived. For lines 5a and 5b, the
ultimate purchaser of kerosene used in commercial
aviation (other than foreign trade) is eligible to make this
claim. For lines 5c and 5d, the ultimate purchaser of
kerosene used in noncommercial aviation (other than
nonexempt, noncommercial aviation and exclusive use
by a state, political subdivision of a state, or the District of
Columbia) is eligible to make this claim.
Allowable uses. For lines 5a and 5b, if the claimant
buys kerosene partly for use in commercial aviation and
partly for use in noncommercial aviation, see the rules in
Notice 2005-80, section 3(e)(3).
For lines 5c and 5d, the kerosene must have been
used during the period of claim for type of use 1, 9, 10,
11, 13, 15, or 16.

CAUTION

Claimant. The ultimate purchaser of the aviation
gasoline is the only person eligible to make this claim.
Allowable uses. For line 2b, the aviation gasoline must
have been used during the period of claim for type of use
1, 2, 10, 11, 13, 14, or 15. For type of use 13 or 14,
claimant has not waived the right to make a claim. See
Types of use 13 and 14 on page 2.
For line 2c, the aviation gasoline must have been
exported during the period of claim (Type of use 3). See
Exported taxable fuel on page 2.

Line 3. Nontaxable Use of Undyed Diesel Fuel
Claimant. The ultimate purchaser of the diesel fuel is
the only person eligible to make this claim.
Allowable uses. For line 3a, the diesel fuel must have
been used during the period of claim for type of use 2, 6,
7, 8, 11, 13, 14, or 15. For line 3d, the claimant has not
waived the right to make a claim. See Types of use 13
and 14 on page 2. Type of use 8 includes use as heating
oil and use in a motorboat.

Information for Claims on Lines 6–8
Registration number. To make an ultimate vendor
claim on lines 6 –8 you must be registered. Enter your
registration number, including the prefix, on the
applicable line for your claim. If you are not registered,
use Form 637, Application for Registration (For Certain
Excise Tax Activities), to register.
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Required certificates or waiver. The required
certificates or waivers for lines 6 –8 are listed in the line
instructions and are available in Pub. 510.

waives his or her right to make the claim by providing the
registered ultimate vendor with an unexpired waiver. See
Model Waiver N in Pub. 510. Only one claim may be filed
for any gallon of kerosene.
Registration number. Enter your UB registration
number in the space provided.

Line 6a. Sales by Registered Ultimate Vendors
of Undyed Diesel Fuel
Claimant. For line 6a, the registered ultimate vendor of
the diesel fuel is the only person eligible to make this
claim and has obtained the required certificate from the
buyer and has no reason to believe any information in the
certificate is false. See Model Certificate P in Pub. 510.
Only one claim may be filed for any gallon of diesel fuel.
Allowable sales. The fuel must have been sold during
the period of claim for the exclusive use by a state or
local government (including essential government use by
an Indian tribal government).
Registration number. Enter your UV registration
number in the space provided.
Information to be submitted. For claims on line 6a,
attach a separate sheet with the name and TIN of each
governmental unit to whom the diesel fuel was sold and
the number of gallons sold to each.

Lines 8a and 8b. Sales By Registered Ultimate
Vendors of Kerosene For Use in Commercial
Aviation (Other Than Foreign Trade)

!

The credit rate for line 8a changes after
September 30, 2007.

CAUTION

Claimant. The registered ultimate vendor of the
kerosene sold for use in commercial aviation is eligible to
make this claim only if the buyer waives his or her right
by providing the registered ultimate vendor with an
unexpired waiver. See Model Waiver L in Pub. 510. Only
one claim may be filed for any gallon of kerosene sold for
use in commercial aviation.
Allowable sales. The kerosene sold for use in
commercial aviation must have been sold during the
period of claim for use in commercial aviation (other than
foreign trade).
Registration number. Enter your UA registration
number in the space provided.

Line 6b. Sales by Registered Ultimate Vendors
of Undyed Diesel Fuel for Use in Certain
Intercity and Local Buses
Claimant. For line 6b, the registered ultimate vendor of
the diesel fuel is eligible to make a claim only if the buyer
waives his or her right to make the claim by providing the
registered ultimate vendor with an unexpired waiver. See
Model Waiver N in Pub. 510. Only one claim may be filed
for any gallon of diesel fuel.
Registration number. Enter your UB registration
number in the space provided.

Lines 8c, 8d, and 8e. Sales By Registered
Ultimate Vendors of Kerosene Sold For Use in
Noncommercial Aviation

!

Lines 7a and 7b. Sales by Registered Ultimate
Vendors of Undyed Kerosene (Other Than
Kerosene for Use in Aviation)

The credit rates for lines 8c and 8e change after
September 30, 2007.

CAUTION

Claimant. For line 8c, the registered ultimate vendor of
the kerosene sold for use in nonexempt, noncommercial
aviation is the only person eligible to make this claim and
has obtained the required certificate from the ultimate
purchaser. For lines 8d and 8e, the registered ultimate
vendor of the kerosene sold for nontaxable use in
noncommercial aviation is eligible to make this claim only
if the buyer waives his or her right to make the claim by
providing the registered ultimate vendor with an
unexpired waiver. See Model Waiver L in Pub. 510. For
type of use 14, see Model Certificate P in Pub. 510. Only
one claim may be filed for any gallon of kerosene sold for
use in noncommercial aviation.
Allowable sales. For line 8c, the kerosene must have
been sold for a nonexempt use in noncommercial
aviation. For lines 8d and 8e, the kerosene sold for use in
noncommercial aviation must have been sold during the
period of claim for type of use 1, 9, 10, 11, 13, 14, or 15.
Registration number. Enter your UA (UV if type of use
14) registration number in the space provided.

Claimant. For line 7a, the registered ultimate vendor of
the kerosene is the only person eligible to make this
claim and has obtained the required certificate from the
buyer and has no reason to believe any information in the
certificate is false. See Model Certificate P in Pub. 510.
For line 7b, claimant has a statement, if required, that
contains: the date of sale, name and address of the
buyer, and the number of gallons of kerosene sold to the
buyer. For lines 7a and 7b, only one claim may be filed
for any gallon of kerosene.
Allowable sales. The fuel must have been sold during
the period of claim:
• For line 7a, use by a state or local government
(including essential government use by an Indian tribal
government), or
• For line 7b, from a blocked pump.
Registration number. Enter your UV or UP registration
number in the space provided.
Information to be submitted. For claims on line 7a,
attach a separate sheet with the name and TIN of each
governmental unit to whom the kerosene was sold and
the number of gallons sold to each.

Information for Claims on Lines 9, 10, and 12
The alcohol fuel mixture credit, biodiesel or renewable
diesel mixture credit, alternative fuel credit, and
(Form 720)
alternative fuel mixture credit must first be taken on
Schedule C to reduce your taxable fuel liability reported
on Form 720. If you did not make these claims on
Schedule C (Form 720), you must make them on Form
720X, Amended Quarterly Federal Excise Tax Return,
before making them on Form 4136.

Line 7c. Sales by Registered Ultimate Vendors
of Undyed Kerosene for Use in Certain Intercity
and Local Buses
Claimant. For line 7c, the registered ultimate vendor of
the kerosene is eligible to make a claim only if the buyer
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Instructions for Form 4136

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The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Environmental Protection Agency
(EPA)

Line 9. Alcohol Fuel Mixture Credit

Line 11. Nontaxable Use of Alternative Fuel

Claimant. The person that produced and sold or used
the mixture in their trade or business is the only person
eligible to make this claim. The credit is based on the
gallons of alcohol in the mixture.

Claimant. The ultimate purchaser of the taxed
alternative fuel is the only person eligible to make this
claim.
Allowable uses. The alternative fuel must have been
used during the period of claim for type of use 1, 2, 4, 5,
6, 7, 11, 13, 14, or 15.
Type of use 5. Write “Bus” in the space to the left of
column (a). Enter the correct credit rate in column (b).
The credit rates for type of use 5 are listed below.

Registration number. If you are a registered blender or
a taxable fuel registrant, enter your registration number,
including the prefix, on line 9.
How to claim the credit. Any alcohol fuel mixture credit
must first be taken on Schedule C (Form 720) to reduce
your taxable fuel liability reported on Form 720. Any
excess credit may be taken on Schedule C (Form 720),
Schedule 3 (Form 8849), Form 4136, or Form 6478. See
Notice 2005-4 and Notice 2005-62 for more information.

Line 10. Biodiesel or Renewable Diesel Mixture
Credit
Claimant. The person that produced and sold or used
the mixture in their trade or business is the only person
eligible to make this claim. The credit is based on the
gallons of biodiesel or renewable diesel in the mixture.
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 renewable diesel used to produce the
renewable diesel mixture must be derived from biomass
(as defined in section 45K(c)(3)) using a thermal
depolymerization process, meet ASTM D6751, and be
registered with the EPA as a fuel and fuel additive under
section 211 of the Clean Air Act.

Line number

Credit rate

11a

$.109

11b

.110

11c

.109*

11d

.110

11e

.17

11f

.17

11g

.169

*This is the credit rate per gasoline gallon equivalent (126.67 cu. ft. of
CNG).

Line 12. Alternative Fuel Credit and Alternative
Fuel Mixture Credit
Claimant. For the alternative fuel credit, the registered
alternative fueler who (1) sold an alternative fuel at retail
and delivered it into the fuel supply tank of a motor
vehicle or motorboat, (2) sold an alternative fuel,
delivered it in bulk for taxable use in a motor vehicle or
motorboat, and received the required statement from the
buyer, or (3) used an alternative fuel (not sold at retail or
in bulk as previously described) in a motor vehicle or
motorboat is the only person eligible to make this claim.
For the alternative fuel mixture credit, the registered
alternative fueler that produced and sold or used the
mixture as a fuel in their trade or business is the only
person eligible to make this claim. The credit is based on
the gallons of alternative fuel in the mixture.
Registration number. You must enter your registration
number, including the prefix, in the space provided.
How to claim the credit. Any alternative fuel credit and
alternative fuel mixture credit must first be taken on
Schedule C (Form 720) to reduce your taxable fuel
liability reported on Form 720. Any excess alternative fuel
credit may be taken on Schedule C (Form 720) or Form
4136. Any excess alternative fuel mixture credit may be
taken on Schedule C (Form 720), Schedule 3 (Form
8849), or Form 4136.

Certificate. The Certificate for Biodiesel and, if
applicable, Statement of Biodiesel Reseller must be
attached to the first claim filed that is supported by the
certificate or statement. For the renewable diesel mixture
credit, you must edit the certificate and, if applicable,
statement to indicate that the fuel to which the certificate
and statement relate is renewable diesel and state the
renewable diesel meets the requirements discussed
above under Claimant. See Model Certificate O and
Model Certificate S in Pub. 510. If the certificate and
statement are not attached to Form 4136 because they
are attached to a previously filed claim on Schedule C
(Form 720) or Schedule 3 (Form 8849) for the biodiesel,
attach a separate sheet with the following information.
1. Certificate identification number.
2. Total gallons of biodiesel or renewable diesel on
certificate.
3. Total gallons claimed on Schedule 3 (Form 8849).
4. Total gallons claimed on Schedule C (Form 720),
line 13.
Registration number. If you are a registered blender or
a taxable fuel registrant, enter your registration number,
including the prefix, on line 10.

Line 13. Registered Credit Card Issuers

How to claim the credit. Any biodiesel or renewable
diesel mixture credit must first be taken on Schedule C
(Form 720) to reduce your taxable fuel liability reported
on Form 720. Any excess credit may be taken on
Schedule C (Form 720), Schedule 3 (Form 8849), Form
4136, or Form 8864. See Notice 2005-4 and Notice
2005-62 for more information.

!

The credit rate for line 13c changes after
September 30, 2007.

CAUTION

Claimant. The registered credit card issuer is the only
person eligible to make this claim if the credit card issuer:
1. Is registered by the IRS;
2. Has not collected the amount of tax from the
ultimate purchaser or has obtained the written consent of
the ultimate purchaser to make the claim;

For lines 11 and 12, see Notice 2006-92.

TIP
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Instructions for Form 4136

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3. Certifies that it has repaid or agreed to repay the
amount of tax to the ultimate vendor, has obtained the
written consent of the ultimate vendor to make the claim,
or has otherwise made arrangements which directly or
indirectly provide the ultimate vendor with reimbursement
of the tax; and
4. Has in its possession an unexpired certificate from
the ultimate purchaser and has no reason to believe any
of the information in the certificate is false. See Model
Certificate R in Pub. 510.

Information to be submitted. The blender must attach
a statement to the claim certifying that:
• The diesel-water fuel emulsion contains at least 14%
water,
• The emulsion additive is registered by a United States
manufacturer with the EPA under section 211 of the
Clean Air Act,
• Undyed diesel fuel taxed at $.244 was used to produce
the diesel-water fuel emulsion, and
• The diesel-water fuel emulsion was used or sold for
use in the blender’s trade or business.

If any of these conditions is not met, the credit card
issuer must collect the tax from the ultimate purchaser
and only the ultimate purchaser can make the claim.
Allowable sales. The diesel fuel, kerosene, or kerosene
for use in aviation must have been purchased with a
credit card issued to the ultimate purchaser during the
period of claim for the exclusive use by a state or local
government (including essential government use by an
Indian tribal government).
Registration number. Enter your CC registration
number in the space provided.

Line 16. Exported Dyed Fuel
Claimant. The person that exported dyed diesel fuel or
dyed kerosene during the period of claim is the only
person eligible to make this claim. See Exported taxable
fuel on page 2.
Paperwork Reduction Act Notice. We ask for the
information on Form 4136 to carry out the Internal
Revenue laws of the United States. We need it to ensure
that you are complying with these laws and to allow us to
figure and collect the right amount of tax.
You are not required to provide the information
requested on a form that is subject to the Paperwork
Reduction Act unless the form displays a valid OMB
control number. Books or records relating to a form or its
instructions must be retained as long as their contents
may become material in the administration of any Internal
Revenue law. Generally, tax returns and return
information are confidential, as required by section 6103.
The time needed to complete and file this form will
vary depending on individual circumstances. The
estimated burden for individual taxpayers filing this form
is approved under OMB control number 1545-0074 and
is included in the estimates shown in the instructions for
Form 1040. The estimated burden for all other taxpayers
is shown below. Recordkeeping, 41 hr., 47 min.;
Learning about the law or the form, 6 min.; Preparing
and sending the form to the IRS, 49 min.
If you have comments concerning the accuracy of
these time estimates or suggestions for making Form
4136 simpler, we would be happy to hear from you. You
can write to the Internal Revenue Service at the address
listed in the instructions of the tax return with which Form
4136 is filed.

For line 13c, if the kerosene was taxed at $.244,
the credit rate is $.243. Write “Taxed at $.244” in
CAUTION the space to the left of column (b). Enter $.243 in
column (b).

!

Line 14. Nontaxable Use of a Diesel-Water Fuel
Emulsion
Claimant. The ultimate purchaser of the diesel-water
fuel emulsion is the only person eligible to make this
claim.
Allowable uses. For line 14a, the diesel-water fuel
emulsion must have been used during the period of claim
for type of use 1, 2, 5, 6, 7, 8, 11, 13, 14, or 15. For line
14b, the diesel-water fuel emulsion must have been
exported during the period of claim (Type of use 3). See
Exported taxable fuel on page 2.
Type of use 5. Write “Bus” in the space to the left of
column (a). Enter the correct credit rate in column (b).
The credit rate for type of use 5 is $.124 per gallon.

Line 15. Diesel-Water Fuel Emulsion Blending
Claimant. The person that produced (the blender) and
sold or used the diesel-water fuel emulsion is the only
person eligible to make this claim.
Registration number. Enter your M registration number
in the space provided.

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