Introduction

You may be eligible to claim a credit on your income tax return for the federal excise tax on certain fuels. You may also be eligible to claim a quarterly refund of the fuel taxes during the year instead of waiting to claim a credit on your income tax return.

Whether you can claim a credit or refund depends on whether the fuel was taxed and the purpose (nontaxable use) for which you used the fuel. The nontaxable uses of fuel for which a farmer may claim a credit or refund are generally the following.

• Use on a farm for farming purposes.

• Off-highway business use.

• Uses other than as a fuel in a propulsion engine, such as home use.

Table 14-1 presents an overview of credits and refunds that may be claimed for fuels used for the nontaxable uses listed above. See Pub. 510, Excise Taxes, for more information.

Topics This chapter discusses:

• Fuels used in farming

• Dyed diesel fuel and dyed kerosene

• Fuels used in off-highway business use

• Fuels used for household purposes

• How to claim a credit or refund

• Including the credit or refund in income

Useful Items You may want to see:

Publication

720

510

510 Excise Taxes

Form (and Instructions)

720 Quarterly Federal Excise Tax Return

88 Chapter 14 Fuel Excise Tax Credits and Refunds Publication 225 (2025)

Fuel Excise Tax Credits and Refunds at a Glance

4136

8849

4136 Credit for Federal Tax Paid on Fuels

8849 Claim for Refund of Excise Taxes

Table 14-1.

See How To Get Tax Help for information about getting publications and forms.