Federal Nontaxable Use of Fuels

Nontaxable Use of Fuels
Schedule 1 (Form 8849) (Rev. May 2020)
Schedule 1
(Form 8849)
(Rev. May 2020)
Department of the Treasury
Internal Revenue Service

Nontaxable Use of Fuels
OMB No. 1545-1420

Attach to Form 8849. Don’t file with any other schedule.
▶ Go to www.irs.gov/Form8849 for the latest information.

▶

EIN or SSN

Name as shown on Form 8849

Total refund (see instructions)

$
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 1a and 2b (types of use 13 and 14), 3d, 4c, and 5, claimant has not waived the right to make the claim. For
claims on lines 1a and 2b (types of use 13 and 14), claimant certifies that a certificate has not been provided to the credit card
issuer. See instructions for kerosene used in commercial aviation from March 28, 2020, through December 31, 2020.
Period of claim: Enter month, day, and year
in MMDDYYYY format.
1

Nontaxable Use of Gasoline

From ▶
(a) Type
(b) Rate
of use

(c) Gallons

a
b
2
a

To ▶
(d) Amount of refund
Multiply col. (b) by col. (c)
$

(e)
CRN

(d) Amount of refund
Multiply col. (b) by col. (c)

(e)
CRN

Gasoline (see Caution above line 1)
$.183
362
Exported
.184
411
Nontaxable Use of Aviation Gasoline
Use in commercial aviation (other than foreign
trade)
$.15
$
354
b Other nontaxable use (see Caution above line 1)
.193
324
c Exported
.194
412
d LUST tax on aviation fuels used in foreign trade
.001
433
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 a detailed explanation
and check here . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ▶
(a) Type
(d) Amount of refund
(e)
(b) Rate
(c) Gallons
of use
Multiply col. (b) by col. (c) CRN
a Nontaxable use
$.243
360
b Use on a farm for farming purposes
.243
$
c Use in trains
.243
353
d Use in certain intercity and local buses
(see Caution above line 1)
.17
350
e Exported
.244
413
4
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 a detailed explanation
and check here . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ▶
Caution: Claims cannot be made on line 4 for kerosene sales from a blocked pump. Only registered ultimate vendors may
make those claims using Schedule 2.

}

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

(a) Type
(b) Rate
of use
$.243
.243

(c) Gallons

}$

.17
.244
.043
.218

For Privacy Act and Paperwork Reduction Act Notice, see the Form 8849 instructions.

346
347
414
377
369

Cat. No. 27449T

Schedule 1 (Form 8849) (Rev. 5-2020)

Page 2

Schedule 1 (Form 8849) (Rev. 5-2020)

5

Kerosene Used in Aviation (see Caution above line 1)
(a) Type
(b) Rate
of use

(c) Gallons

(d) Amount of refund
Multiply col. (b) by col. (c)

(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
.175
355
c Nontaxable use (other than use by state or
local government) taxed at $.244
.243
346
d Nontaxable use (other than by state or local
government) taxed at $.219
.218
369
e LUST tax on aviation fuels used in foreign trade
.001
433
6 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 for the credit rate.
(a) Type
(b) Rate
of use

(c) Gallons, or gasoline
(d) Amount of refund
or diesel gallon
Multiply col. (b) by col. (c)
equivalents

(e)
CRN

a
b
c
d
e

Liquefied petroleum gas (LPG) (see instructions)
$.183
$
419
“P Series” fuels
.183
420
Compressed natural gas (CNG) (see instructions)
.183
421
Liquefied hydrogen
.183
422
Fischer-Tropsch process liquid fuel from coal
(including peat)
.243
423
f Liquid fuel derived from biomass
.243
424
g Liquefied natural gas (LNG) (see instructions)
.243
425
h Liquefied gas derived from biomass
.183
435
7 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 for the credit rate.
(a) Type
(d) Amount of refund
(e)
(b) Rate
(c) Gallons
of use
Multiply col. (b) by col. (c) CRN
a Nontaxable use
$.197
$
309
b Exported
.198
306
8 Exported Dyed Fuels and Gasoline Blendstocks
(a) Type
(d) Amount of refund
(e)
(b) Rate
(c) Gallons
of use
Multiply col. (b) by col. (c) CRN
a

Exported dyed diesel fuel and exported
gasoline blendstocks taxed at $.001
b Exported dyed kerosene

$.001
.001

$

415
416
Schedule 1 (Form 8849) (Rev. 5-2020)

Page 3

Schedule 1 (Form 8849) (Rev. 5-2020)

What’s New

Specific Instructions

Tax holiday for kerosene used in commercial aviation.
Kerosene used in commercial aviation from March 28, 2020,
through December 31, 2020 (tax holiday) is treated as a
nontaxable use. Go to www.irs.gov/newsroom/faqs-aviationexcise-tax-holiday-under-the-cares-act for answers to frequently
asked questions (FAQs). See the instructions for line 5.

Line 1. Nontaxable Use of Gasoline

Reminders
The ultimate purchaser of aviation gasoline or kerosene used
in foreign trade is eligible to make a claim on line 2d or 5e for the
leaking underground storage tank (LUST) tax if the ultimate
purchaser has not waived his or her right to make the claim by
providing the registered ultimate vendor with an unexpired waiver.

General Instructions
Purpose of Schedule
An ultimate purchaser of certain fuels uses Schedule 1 to make
a claim for refund. The fuels for which a claim can be made are
listed on the form. The fuel must have been used in a
nontaxable use. See Type of Use below and the instructions for
lines 1 through 8 for more information.

Claim Requirements
The following requirements must be met.
1. The amount claimed on Schedule 1 must be at least $750.
This amount may be met by:
a. Making a claim for fuel used during any quarter of a
claimant’s income tax year, or
b. Aggregating amounts from any quarters of the claimant’s
income tax year for which no other claim has been made.
2. The claim must be filed during the first quarter following the
last quarter included in the claim. For example, a claim for the
quarters consisting of July through September and October
through December must be filed between January 1 and
March 31.
3. Only one claim may be filed for a quarter.
Note: If requirements 1–3 above are not met, see Annual
Claims under Additional Information for Schedules 1, 2, and 3 in
the Form 8849 instructions.

Total Refund
Add all amounts in column (d) and enter the result in the total
refund box at the top of the schedule.

Type of Use
The fuel must have been used for one or more of the types of
use listed in the instructions for lines 1 through 7. The
nontaxable uses are listed in the Type of Use Table in the Form
8849 instructions.
Exported taxable fuel. The claim rates for exported taxable
fuel are listed on lines 1b, 2c, 3e, 4d, 8a, and 8b. 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,
• A certificate by the agent or representative of the export
carrier showing actual 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.

How To File
Attach Schedule 1 to Form 8849. Mail to the IRS at the address
under Where To File in the Form 8849 instructions.

Allowable uses. For line 1a, the gasoline must have been used
during the period of claim for type of use 2, 4, 5, 7, 11, 12, 13,
14, or 15. Type of use 2 does not include any personal use or
use in a motorboat. See Types of Use 13 and 14 in the Form
8849 instructions.
For line 1b, the gasoline must have been exported during the
period of claim (type of use 3). See Exported taxable fuel, earlier.

Line 2. Nontaxable Use of Aviation Gasoline
Allowable uses. For line 2b, the aviation gasoline must have
been used during the period of claim for type of use 2, 9, 10,
11, 13, 14, 15, or 16. See Types of Use 13 and 14 in the Form
8849 instructions.
For line 2c, the aviation gasoline must have been exported
during the period of claim (type of use 3). See Exported taxable
fuel, earlier.
For line 2d, the aviation gasoline must have been used during
the period of claim for type of use 9. This claim is made in
addition to the claim made on line 2b for type of use 9.

Line 3. Nontaxable Use of Undyed Diesel Fuel
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, 12,
13, 14, or 15. Type of use 8 includes use as heating oil and use
in a boat. Type of use 2 does not include any personal use or
use in a motorboat. See Types of Use 13 and 14 in the Form
8849 instructions.
For line 3e, the diesel fuel must have been exported during
the period of claim (type of use 3). See Exported taxable fuel,
earlier.

Line 4. Nontaxable Use of Undyed Kerosene (Other
Than Kerosene Used in Aviation)
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, 12,
13, 14, or 15. Type of use 8 includes use as heating oil and use
in a boat. Type of use 2 does not include any personal use or
use in a motorboat. See Types of Use 13 and 14 in the Form
8849 instructions.
For line 4d, the kerosene must have been exported during the
period of claim (type of use 3). See Exported taxable fuel, earlier.
For lines 4e and 4f, the kerosene must have been used during
the period of claim for type of use 2.

Line 5. Kerosene Used in Aviation
Kerosene used in commercial aviation from March 28,
2020, through December 31, 2020 (tax holiday) is
treated as a nontaxable use; report claims using type of use
15. To make a claim, use type of use 15, on line 5c or 5d,
depending on the tax rate paid. Claimants must attach a
statement explaining that the claim is for the relief provided by
the tax holiday and follow the following claim requirements.

▲
!
CAUTION

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, 5d, and 5e, the ultimate purchaser of kerosene
used in noncommercial aviation (except for 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. The ultimate purchaser certifies that the right to
make this claim has not been waived.

Page 4

Schedule 1 (Form 8849) (Rev. 5-2020)

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.
For line 5e, the kerosene must have been used during the
period of claim for type of use 9. This claim is made in addition
to the claim made on lines 5c and 5d for type of use 9.

Line 6. Nontaxable Use of Alternative Fuel
Allowable uses. The taxed 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.
Line number

Credit rate

6a

$.109*

6b

.110

6c

.109**

6d

.110

6e

.17

6f

.17

6g

.169***

6h
.110
(*) This is the claim rate per GGE (5.75 pounds or 1.353 gallons of LPG)
(**) This is the claim rate per GGE (5.66 pounds or 123.57 cubic ft. of CNG)
(***) This is the claim rate per DGE (6.06 pounds or 1.71 gallons of LNG)

Type of use 5 example. 10,000 gallons of LPG ÷ 1.353 =
7,391 GGE x $0.109 = $805.62 claim amount.

Line 7. Nontaxable Use of a Diesel-Water Fuel
Emulsion
Allowable uses. For line 7a, 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, 12, 13, 14, or 15. For line 7b, the diesel-water
fuel emulsion must have been exported during the period of
claim (type of use 3). See Exported taxable fuel on page 3.
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 8. Exported Dyed Fuels and Gasoline
Blendstocks
A claim may be made for dyed diesel fuel or dyed kerosene
exported in a trade or business during the period of claim.
Claims for exported gasoline blendstocks taxed at $.001per
gallon are made on line 8a. See Exported taxable fuel on page 3.

▲
!
CAUTION

Claims for exported gasoline blendstocks taxed at $.184
per gallon are made on line 1b.