Form 8849 Schedule 1 8849 Schedule 1 Nontaxable Use of Fuels

Schedule 1 (Form 8849), Nontaxable Use of Fuels
(Rev. October 2006)
Purpose: This is the first circulated draft of Schedule 1 (Form 8849) 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 December 2005 Schedule 1 (Form 8849) is available at:
http://www.irs.gov/pub/irs-pdf/f8849s1.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 11, 2006.
Michael Ecker
Tax Law Specialist
SE:W:CAR:MP:T:T:SB
NCFB C7-265 (Temporary Location)
Phone: 202-283-0196
VMS: 202-622-3144
Fax: 202-283-7008
Email: Michael.D.Ecker@irs.gov

Major Changes
These changes are based on the Energy Tax Incentives Act of 2005 and the
Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy
for Users or "SAFETEA-LU."
•

We added separate lines for exported taxable fuel. Changes made per IRC 6430.
Also see line 9, Exported Dyed Fuels, later.
Add new line 1b for exported gasoline (Rate = .184 & CRN 411)
Add new line 2c for exported aviation gasoline (Rate = .194 & CRN 412)
Add new line 3f for exported undyed diesel fuel (Rate = .244 & CRN 413)
Add new line 4d for exported undyed kerosene (Rate = .244 & CRN 414)

•

We added new line 3d for undyed diesel fuel used in trains after December 31,
2006.(Rate = .243 & CRN 353)

•

We added new line 7, Nontaxable Use of Alternative Fuels (after September
30, 2006) Change made per 6427(a).
Line 7a Liquefied petroleum gas (LPG) (Rate = .183 & CRN 419)
Line 7b “P series” fuels (Rate = .183 & CRN 420)
Line 7c Compressed natural gas (CNG) (Rate = .183 & CRN 421)
Line 7d Liquefied hydrogen (Rate = .183 & CRN 422)
Line 7e Any liquid fuel derived from coal (including peat) through the FischerTropsch process (Rate = .243 & CRN 423)
Line 7f Liquefied hydrocarbons derived from biomass (Rate = .243 & CRN 424)
Line 7g Liquefied natural gas (LNG) (Rate = .243 & CRN 425)
•

We added new line 8, Nontaxable Use of a Diesel-Water Fuel Emulsion.
Change made per 4081(a)(2)(d) and 6427(l).
Line 8a Nontaxable use (Rate =.197 & CRN 309)
Line 8b Exported (Rate =.198 & CRN 306)
• We added new line 9, Exported Dyed Fuels. Change made per IRC 6430.
Line 9a Exported dyed diesel fuel (Rate = .001 & CRN 415)
Line 9b Exported dyed kerosene (Rate = .001 & CRN 416)
•

Under What’s New, we added information on the new lines discussed above.

•

We added a new section, Exported taxable fuel, to describe the required proof of
exportation that claimants are required to keep with their records per Regulations
sections 48.4221-3(c) and (d); and 48.4041-16.

•

As applicable, we added instructions for the new lines. These instructions
conform to the approved language used in the Instructions for Form 4136 and
Schedule C (Form 720).

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I.R.S. SPECIFICATIONS

TO BE REMOVED BEFORE PRINTING

INSTRUCTIONS TO PRINTERS
SCHEDULE 1, FORM 8849, PAGE 1 of 4
MARGINS: TOP 13mm (1⁄ 2 "), CENTER SIDES.
PRINTS: HEAD TO HEAD
PAPER: WHITE WRITING, SUB. 20. INK: BLACK
FLAT SIZE: 884mm (34") 3 279mm (11"), FOLD TO: 216mm (81⁄ 2 ") 3 279mm (11")
PERFORATE: ON FOLD

DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

Schedule 1
(Form 8849)
(Rev. October 2006)
Department of the Treasury
Internal Revenue Service
Name as shown on Form 8849

Action

Date

Signature

O.K. to print
Revised proofs
requested

Nontaxable Use of Fuels

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OMB No. 1545-1420

Attach to Form 8849.

©

See instructions.

EIN or SSN

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 1 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 1 or 2 (types of use 13 and 14), claimant certifies that a certificate has not been provided to the credit card issuer.
Period of claim: Enter month, day, and year
in MMDDYYYY format.

1

Nontaxable Use of Gasoline
a Gasoline (see Caution above line 1)
b Exported

2

From

©

(a) Type (b) Rate
of use

©

To

(c) Gallons

(d) Amount of refund

(e)
CRN

Multiply col. (b) by col. (c)

$ .183
.184

$

$

$

362
411

Nontaxable Use of Aviation Gasoline

a Use in commercial aviation
(other than foreign trade)
b Other nontaxable use (see Caution above line 1)
c Exported

3

.15
.193
.194

354
324
412

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 (b) Rate
of use

a
b
c
d

4

Nontaxable use
Use on a farm for farming purposes
Use in trains (before January 1, 2007)
Use in trains (after December 31, 2006)

$ .243
.243
.22
.243

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

.17
.244

(c) Gallons

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

%$

(e)
CRN

360
353
353
350
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 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) Type (b) Rate
of use

a Nontaxable use
b Use on a farm for farming purposes
c Use in certain intercity and local buses
(see Caution above line 1)
d Use in trains (after December 31, 2006)
de Exported

5

(c) Gallons

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

%$

$ .243
.243

(e)
CRN

346
347
350
353
414

.17
.243
.244

Kerosene Used in Commercial Aviation (Other Than Foreign Trade)
(b) Rate

a Kerosene taxed at $.244 (see Caution above line 1)
b Kerosene taxed at $.219 (see Caution above line 1)

(c) Gallons

$

$ .200
.175

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

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

Cat. No. 27449T

(e)
CRN

417
355

Schedule 1 (Form 8849) (Rev. 10-2006)

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I.R.S. SPECIFICATIONS

TO BE REMOVED BEFORE PRINTING

INSTRUCTIONS TO PRINTERS
SCHEDULE 1, FORM 8849, PAGE 2 of 4
MARGINS: TOP 13mm (1⁄ 2 "), CENTER SIDES.
PRINTS: HEAD TO HEAD
PAPER: WHITE WRITING, SUB. 20. INK: BLACK
FLAT SIZE: 884mm (34") 3 279mm (11"), FOLD TO: 216mm (81⁄ 2 ") 3 279mm (11")
PERFORATE: ON FOLD

DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

We will insert the column headings for line 6.
Schedule 1 (Form 8849) (Rev. 10-2006)

6

Page

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a Use in certain intercity and local buses
b Use in qualified local buses and in school buses
c Other nontaxable use

7

through the Fischer-Tropsch process

(a) Type
of use (b) Rate

Liquefied petroleum gas (LPG)
“P Series” fuels
Compressed natural gas (CNG)
Liquefied hydrogen
Any liquid fuel derived from coal (including peat)
Liquid hydrocarbons derived from biomass
Liquefied natural gas (LNG)

$ .183
.183
.183
.183
.243
.243
.243

352
361
395

(c) Gallons or gasoline
gallon equivalents

(d) Amount of refund

$

(e)
CRN

419
420
421
422
423
424
425

Nontaxable Use of a Diesel-Water Fuel Emulsion

(a) Type
of use (b) Rate

a Nontaxable use
b Exported

9

$

$ .062
.136
.136

Nontaxable Use of Alternative Fuels (after September 30, 2006)

a
b
c
d
e
f
g

8

2

Nontaxable Use of Liquefied Petroleum Gas (LPG) (before October 1, 2006)

Exported Dyed Fuels

$ .197
.198

(a) Type
of use (b) Rate

a Exported dyed diesel fuel
b Exported dyed kerosene

(c) Gallons

$ .001
.001

(d) Amount of refund

$

(c) Gallons

(d) Amount of refund

$

(e)
CRN

309
306
(e)
CRN

415
416

Schedule 1 (Form 8849) (Rev. 10-2006)

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I.R.S. SPECIFICATIONS
TO BE REMOVED BEFORE PRINTING
INSTRUCTIONS TO PRINTERS
Schedule 1, Form 8849, PAGE 3 of 4 (PAGE 4 BLANK)
MARGINS: TOP 13 mm (1⁄ 2 "), CENTER SIDES.
PRINTS: HEAD to HEAD
PAPER: WHITE WRITING, SUB. 20.
INK: Black
FLAT SIZE: 884 mm (34") x 279 mm (11") FOLD TO: 216 mm (81⁄ 2 ") x 279 mm (11")
PERFORATE: ON FOLD
DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

Schedule 1 (Form 8849) (Rev. 10-2006)

Instructions

Page

However, the person that produced the
diesel-water fuel emulsion should
continue to use Schedule 6.

What’s New

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● Claims for the nontaxable use of alternative fuels after
September 30, 2006, are made on line 7.
● After September 30, 2006, liquefied petroleum gas (LPG) is
considered an alternative fuel. Claims for nontaxable use of
LPG before October 1, 2006, are made on line 6. If the
nontaxable use occurs after September 30, 2006, the claim
must be made on line 7a.
● Claims for the nontaxable use of a diesel-water fuel
emulsion are made on line 8. These claims were previously
claimed on Schedule 6.
● Claims for exported taxable fuel are made on lines 1b, 2c,
3f, 4d, 9a, and 9b.

Purpose of Schedule

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 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 4 and 6
through 8. 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, 3f, 4d, 9a, and 9b. 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
accrual exportation of the fuel,
● A certificate of landing signed by a customs officer of the
foreign country to which the fuel 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.

Line 1. Nontaxable Use of Gasoline

Allowable uses. For line 1a, the gasoline must have been
used during the period of claim for type of use 1, 2, 4, 5, 7,
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 9,
1, 10,
13, 14, 15, or 16. See Types of use 13 and 14 in the Form
8849 instructions.
For line 2c, the gasoline must have been exported during the
period of claim (Type of use 3). See Exported taxable fuel earlier.

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, 5, 6, 7, 8,
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 3f, the gasoline must have been exported during the
period of claim (Type of use 3). See Exported taxable fuel earlier.

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 9 for more information.

Claim Requirements

3

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, 5, 6, 7, 8,
12, 13, 14, 15, or 16. 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 gasoline must have been exported during the
period of claim (Type of use 3). See Exported taxable fuel earlier.

Line 5. Kerosene Used in Commercial Aviation (Other
Than Foreign Trade)
Claimant: The ultimate purchaser of the kerosene used in
commercial aviation (other than foreign trade) is eligible to
make this claim.
Allowable uses. For lines 5a and 5b, claimant certifies that
the right to make the claim has not been waived. 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). Only one claim may be filed
with respect to any gallon of kerosene used in commercial
aviation.

Line 6. Nontaxable Use of Liquefied Petroleum Gas
(LPG) (before October 1, 2006)
Allowable uses. For line 6c, the taxed LPG (such as propane
or butane) must have been used during the period of claim
for type of use 1, 2, 4, 13, 14, or 15.

Line 7. Nontaxable Use of Alternative Fuels (after
September 30, 2006)
Allowable uses. The alternative fuel must have been used
after September 30, 2006, for type of use 1, 2, 4, 5, 6, 7, 13,
14, or 15.

Line 8. Nontaxable Use of a Diesel-Water Fuel
Emulsion

6,

Allowable uses. For line 8a, the diesel-water fuel emulsion
must have been used during the period of claim for type of
use 1, 2, 7, 8, 12, 13, 14, or 15. For line 8b, the diesel-water
fuel emulsion must have been exported during the period of
claim (Type of use 3). See Exported taxable fuel earlier.

Line 9. Exported Dyed Fuel
A claim may be made for dyed diesel fuel or dyed kerosene
exported during the period of claim. See Exported taxable
fuel earlier.

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