Refund on fuel tax available for off-road use
Contractors are often eligible for a partial refund of the federal excise tax they pay on certain fuels.
A federal excise tax of 18.4 cents a gallon is imposed on gasoline, with clear diesel fuel and clear kerosene being taxed at 24.4 cents a gallon. If you use these types of fuels in your business, you may be entitled to a refund of the excise tax you paid.
The amount of these taxes may be credited or refunded if the fuel is used in such off-road ways as heating oil, in stationary engines, in non-highway vehicles and in separate engines mounted on highway vehicles.