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Posted: Tue Dec 19, 2006 7:01 pm
by offsite
I currently operate sweepers which have dual engines. I was told at one time that the federal tax and/or state tax that is paid on the fuel which is used on the rear engine can be written off.

Does anyone else know about this rule? If so, please reply with any and all information which may help.

I have only been operating for about 2 months, and want to be ready at years end regarding taxes.

Thanks in advance to any responces.

Posted: Tue Dec 19, 2006 10:18 pm
by Dwan
The fuel tanks must be seperate inorder to prove how much eather motor burns. So I was told by a CPA/tax preparer.
if there are seperate then you have to record how much you put in each then you can apply for a credit for the off road use.

Fuel Tax

Posted: Wed Dec 20, 2006 5:54 am
by Sweeper
You do not need to have a seperate fuel tank. If you have a seperate rear engine you can receive the fuel tax credit. Your rear engine Mfg./Dealer should be able to help you determine the fuel consumption/hour of the auxilliary engine. You should have an hour meter to determine the # of hours of off road use. This should be all the information that you need to get started.

Posted: Fri Dec 22, 2006 4:17 pm
by offsite
Now if I have the total hours used in the aux motor, which will give me a good estimate of total gallons used in the aux motor, then I know how many gallons were used. With that information where in the IRS forms do I apply for the tax credit, and deduct from my taxable earnings?

Thanks again in advance.

Steps to Take

Posted: Tue Dec 26, 2006 12:08 pm
by ranger
Basically, you're applying for an off-road excise tax exemption. Your accountant should know what to do for that. You'll need your pony (auxiliary) engine hours, as well as a fuel usage per hour statement from the manufacturer of the engine. Let me know what the engine is and I'll see if I can dig up the fuel usage statement for you.

Because so many contractors are not applying for their excise tax rebates, since there are a number of steps to take and a lot of uncertainty on how to do it, has a service designed to assist in getting the rebates.

You should also check with your state excise tax office to see whether they allow a similar rebate on state fuel taxes. In some states, like my home state of Washington, a free license is required prior to allowing state taxes to be written off. Until you have the license, you can't start the clock on writing off state taxes on your fuel.

If readers know the situation on state tax write-offs in their state, please let me know via private email sent to:

If I can be of any further assistance, just let me know.

-Ranger Kidwell-Ross, editor