You may claim a credit on your tax return for the federal excise tax paid on fuels that you used:
On a farm for farming purposes—For example, fuel used to run a tractor while plowing.
On a boat used for commercial fishing.
For off-highway business use—This is fuel used in a trade or business, or in an income-producing activity, such as:
In stationary machines such as generators, compressors, power saws, and similar equipment.
For cleaning purposes.
In forklift trucks, bulldozers, and earthmovers.
Off-highway business use doesn’t include use in any registered highway vehicle.
If you’re a farmer and you claim a deduction for this tax as part of your total fuel expense deduction on Schedule F, the amount that you claim must be reported as income on Schedule F.
Likewise, if you deduct the total cost of fuel that you use for off-highway business use or commercial fishing on Schedule C, the amount that you claim must be reported as income on Schedule C.
To claim this credit, you must complete Form 4136. If you use the interview, we’ll calculate this credit for you in our Fuel Tax Credit topic.