Frequently Asked Questions
Who is eligible for the Off-Highway Business Use Gasoline Refund?
Gasoline must be used in a trade or business (or for the production of income) in a non-registered vehicle or for non-transportation machinery.
How does the Off-Highway Business Use Gasoline Refund work?
Taxpayers can claim a refund or credit for the federal excise tax paid on gasoline used for off-highway business purposes, such as operating stationary engines, power saws, or construction equipment.
What law authorizes the Off-Highway Business Use Gasoline Refund?
The Off-Highway Business Use Gasoline Refund is authorized under IRC §6421(a) of the Internal Revenue Code (Title 26, United States Code).
Statutory Text — IRC §6421
Source: Internal Revenue Code, Title 26, United States Code
§ 6421. Gasoline used for certain nonhighway purposes, used by local transit systems, or sold for certain exempt purposes(a) Nonhighway usesExcept as provided in subsection (i), if gasoline is used in an off-highway business use, the Secretary shall pay (without interest) to the ultimate purchaser of such gasoline an amount equal to the amount determined by multiplying the number of gallons so used by the rate at which tax was imposed on such gasoline under section 4081. Except as provided in paragraph (2) of subsection (f) of this section, in the case of gasoline used as a fuel in an aircraft, the Secretary shall pay (without interest) to the ultimate purchaser of such gasoline an amount equal to the amount determined by multiplying the number of gallons of gasoline so used by the rate at which tax was imposed on such gasoline under section 4081.
(b) Intercity, local, or school buses(1) AllowanceExcept as provided in paragraph (2) and subsection (i), if gasoline is used in an automobile bus while engaged in—(A) furnishing (for compensation) passenger land transportation available to the general public, or
(B) the transportation of students and employees of schools (as defined in the last sentence of section 4221(d)(7)(C)),
the Secretary shall pay (without interest) to the ultimate purchaser of such gasoline an amount equal to the product of the number of gallons of gasoline so used multiplied by the rate at which tax was imposed on such gasoline by section 4081.
(2) Limitation in case of nonscheduled intercity or local busesParagraph (1)(A) shall not apply in respect of gasoline used in any automobile bus while engaged in furnishing transportation which is not scheduled and not along regular routes unless the seating capacity of such bus is at least 20 adults (not including the driver).
(c) Exempt purposesIf gasoline is sold to any person for any purpose described in paragraph (2), (3), (4), (5), or (6) of section 4221(a), the Secretary shall pay (without interest) to such person an amount equal to the product of the number of gallons of gasoline so sold multiplied by the rate at which tax was imposed on such gasoline by section 4081. The preceding sentence shall apply notwithstanding paragraphs (2) and (3) of subsection (f). Subsection (a) shall not apply to gasoline to which this subsection applies.
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