Fillable Form Ia 4136 - Iowa Fuel Tax Credit

2015 IA 4136 Fuel Tax Credit Instructions

Iowa fuel tax rates changed effective March 1,

credit is found in Part III of the IA Schedule K-1.

2015

and

July 1,

2015

(B11

or higher).

Members must report the pass-through entity

Additionally, effective July 1, 2015, fuel tax rates

name, pass-through entity FEIN on the top of the

for

Gasoline

and

Ethanol-Blended

Gasoline

form and the member’s tax credit amount in line 6.

changed as a result of a calculated change to the

Include a separate list with this information if

fuel distribution percentage.

claiming this credit from multiple pass-through

entities but complete only one IA 4136.

Resident and nonresident individuals, fiduciaries of

estates and trusts, and C corporations may claim a

SSN or FEIN: Enter Social Security Number or

tax credit on their income tax returns for fuel that

Federal Employer Identification Number (for

was or will be used in unlicensed vehicles for

businesses) in this space. Do not enter your

non-highway purposes in the tax period.

canceled fuel tax refund permit number.

A partnership, LLC, S corporation, estate, or trust

Fuel Used For: Mark the proper box(es) to

with fuel used in unlicensed vehicles for non-

indicate how the fuel was used. Review your

highway purposes during its tax period is eligible

invoices to verify that Iowa fuel tax was paid

before claiming a tax credit. This area must be

for a tax credit that is apportioned to the

completed.

members. The pass-through entity must file the IA

4136 with its return. On Schedule K-1 or on an

Invoice Gallons: Based on the invoice date, enter

attachment to Schedule K-1, report the tax credit

total number of gallons of fuel purchased on which

for each member and instruct the members to

Iowa fuel tax was paid during your tax year.

report the apportioned tax credit on line 6 of form

Invoices must be issued in the name of the taxpayer

IA 4136 and include it with their tax returns.

or entity claiming the tax credit. Retain invoices for

three years after your return is filed.

Include a copy of the IA 4136 and federal Form

4136 with your return.

Highway Gallons: Enter the number of gallons

included in invoice gallons that were used on the

If the taxpayer has filed a fuel tax refund claim

highway.

during the tax year, the Fuel Tax Credit cannot be

claimed, and the refund permit will become invalid

Claimed Gallons: Subtract highway gallons from

if the tax credit is claimed. However, the Fuel Tax

invoice gallons to calculate claimed gallons.

Credit is not available for casualty losses,

Fuel Tax Paid: Multiply the claimed gallons by the

transport diversions, pumping credits, off-loading

appropriate tax rate per gallon in each row.

procedures, blending errors, idle time, power

Sales Tax: Iowa sales tax is owed on all fuel

takeoffs, reefer units, export by distributors, or tax

claimed for tax credit except that used in exempt

overpaid on blended fuel. A refund can be claimed

activities such as farming and processing. To

for those reasons alongside the Fuel Tax Credit.

compute sales tax, within each row, calculate the

Dyed diesel fuel is always sold free of Iowa fuel

average cost per gallon of fuel purchased minus

tax. No Fuel Tax Credit may be claimed for dyed

the relevant per gallon Iowa fuel tax. Multiply the

diesel fuel.

result by the claimed gallons. Multiply this amount

All undyed special fuel used in watercrafts is

by the Iowa sales tax rate of 6% to calculate the

eligible for the Fuel Tax Credit; however, gasoline

sales tax owed.

used in a watercraft does not qualify for the tax

Fuel Tax Credit: Subtract sales tax from the fuel

credit unless the watercraft was used by a

tax paid. Any Fuel Tax Credit claimed must

commercial fisher licensed and operating under

be net of sales tax owed.

an owner’s certificate for commercial fishing gear

Total Fuel Tax Credit: Add the Fuel Tax Credit

issued pursuant to Iowa Code section 482.7.

calculated in each row to determine the total Fuel

Members of a partnership, LLC, S corporation,

Tax Credit in line 6, or report a pass-through tax

estate, or trust may claim this tax credit for fuel

credit amount. Enter that amount on line 59 of the

tax paid by the pass-through entity on fuel that

IA 1040, or line 29 of the IA 1041, or line 1 on

was or will be used in unlicensed vehicles for non-

Schedule C1 of the IA 1120.

highway purposes. Each member’s share of the

41-036c (09/11/15)

Form Ia 4136 - Iowa Fuel Tax Credit - 2015 Page 3

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