|Policy status:||In Force|
|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