Country:United States
Policy status:In Force
Date Effective:1994
Policy Type:Economic Instruments>Fiscal/financial incentives>Taxes, Economic Instruments>Fiscal/financial incentives
Policy Target:Transport, Energy Sector
Agency:Department of Treasury, Internal Revenue Service (IRS)
Legal References:IRS Publication 510, page 16

Alternative fuels used in a manner that the Internal Revenue Service (IRS) deems as nontaxable are exempt from federal fuel taxes. Common nontaxable uses in a motor vehicle are: on a farm for farming purposes; in certain intercity and local buses; in a school bus; exclusive use by a nonprofit educational organization; and exclusive use by a state, political subdivision of a state, or the District of Columbia. This exemption is not available to tax exempt entities that are not liable for excise taxes on transportation fuel.

Last modified: Thu, 16 Feb 2017 20:34:33 CET