Gasoline tax exemption

Discussion in 'Alternative Fuel Forum' started by homecutspro1, Jul 25, 2012.

  1. homecutspro1

    homecutspro1 LawnSite Member
    Posts: 23

    I'm trying to find some information on whether the gasoline i use in my lawn equipment would be eligible for being exempted from the additional tax that is figured into the price of a gallon of gasoline. Since the lawn equipment is not used on the road, it should be exempt from Highway Use Tax. Is there a tax form from the IRS?
  2. rlitman

    rlitman LawnSite Bronze Member
    Posts: 1,552

    The form:

    The instructions for the form:

    Use type "2":
    Off-highway business use (for business use other than in a highway vehicle registered or required to be registered for highway use)

    You must retain receipts for the fuel purchased. They need to state the number of gallons (what you paid is irrelevant to this), where you bought it, and when. You will need to separate receipts between on-road, and off-road use gasoline, because you cannot claim the credit on fuel that went into an on-road vehicle.
    Last edited: Jul 26, 2012
  3. Mark Oomkes

    Mark Oomkes LawnSite Fanatic
    Posts: 12,400

  4. Mahoney3223

    Mahoney3223 LawnSite Senior Member
    from midwest
    Posts: 995

    when keepin it real goes wrong
  5. JContracting

    JContracting LawnSite Bronze Member
    Posts: 1,878

    That explains why Torco Racing Fuels all the sudden stopped being the title sponsor for one of the Honda Teams (motocross). He's screwed. After reading those articles, his life was a blast for a year or two but it's done now, he'll probably die in jail.
  6. Mark Oomkes

    Mark Oomkes LawnSite Fanatic
    Posts: 12,400

    What's amazing (or frustrating) is that it took 4 years to unravel the whole mess.

    I had forgotten all about it from '08, then saw this on the news the other day.
  7. JContracting

    JContracting LawnSite Bronze Member
    Posts: 1,878

    Torco was a sponsor in 07 (maybe) and through 08, but after that I think it was all done. It was very smart (not really, I'd call it creative) to make fake sales of the fuel to get the tax credit, but very dumb to dry to beat the govt, you'll never win against the IRS.

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