Instructions For Form 720 - 2017 (Page 14 of 20) in pdf

A certificate of lading signed by a customs officer of the

For line 5e, the kerosene must have been used during the

foreign country to which the fuel is exported, or

period of claim for type of use 9. This claim is made in

A statement of the foreign consignee showing receipt of

addition to the claim made on lines 5c and 5d for type of

the fuel.

use 9.

Line 6. Nontaxable Use of Alternative Fuel

Line 1. Nontaxable Use of Gasoline

Claimant. The ultimate purchaser of the taxed alternative

Allowable uses. The gasoline must have been used during

fuel is the only person eligible to make this claim.

the period of claim for type of use 2, 4, 5, 7, or 12. For

Allowable uses. The alternative fuel must have been used

exported gasoline, see Exported taxable fuel earlier. Type of

during the period of claim for type of use 1, 2, 4, 5, 6, 7, 11,

use 2 does not include any personal use or use in a

13, 14, or 15.

motorboat.

Type of use 5. Write “Bus” in the space to the left of the

Line 2. Nontaxable Use of Aviation Gasoline

Type of use column. Enter the correct claim rate in the Rate

column. The claim rates for type of use 5 are listed below.

Allowable uses. For line 2b, the aviation gasoline must

have been used during the period of claim for type of use 9,

10, or 16. For exported aviation gasoline, see Exported

Line number

Claim rate: Type of use 5

taxable fuel earlier.

$.109*

For line 2d, the aviation gasoline must have been used

.110

during the period of claim for type of use 9. This claim is

.109**

made in addition to the claim made on line 2b for type of

use 9.

.110

.17

Line 3. Nontaxable Use of Undyed Diesel

.17

Ultimate purchasers use line 3d to make claims for

.169***

diesel used on a farm for farming purposes.

.110

CAUTION

(*) This is the claim rate per GGE (5.75 pounds or 1.353 gallons of LPG); (**) This

Allowable uses. For line 3a, the diesel must have been

is the claim rate per GGE (5.66 pounds or 123.57 cubic ft. of CNG); (***) This is the

used during the period of claim for type of use 2, 6, 7, 8, or

claim rate per DGE (6.06 pounds or 1.71 gallons of LNG)

12. For exported undyed diesel, see Exported taxable fuel

earlier. Type of use 2 does not include any personal use or

use in a motorboat. Type of use 8 includes use as heating oil

Type of use 5 example. 10,000 gallons of LPG ÷ 1.353

and use in a motorboat.

= 7,391 GGE x $0.109 = $805.62 claim amount.

Line 4. Nontaxable Use of Undyed Kerosene

Information for Claims on Lines 7–11

(Other Than Kerosene Used in Aviation)

Registration number. To make an ultimate vendor claim on

Allowable uses. For line 4a, the kerosene must have been

lines 7–11, you must be registered. Enter your registration

used during the period of claim for type of use 2, 6, 7, 8, or

number, including the prefix (for prefixes, see the instructions

12. For exported undyed kerosene, see Exported taxable fuel

for Form 637, Application for Registration, on the applicable

earlier. Type of use 2 does not include any personal use or

line for your claim. If you are not registered, use Form 637 to

use in a motorboat. Type of use 8 includes use as heating oil

apply for a registration number.

and use in a motorboat.

Required certificates or waivers. The required certificates

For lines 4e and 4f, the kerosene must have been used

or waivers for lines 7–11 are listed in the line instructions and

during the period of claim for type of use 2.

are available in Pub. 510.

Line 5. Kerosene Used in Aviation

Line 7a. Sales by Registered Ultimate Vendors

Claimant. For lines 5a and 5b, the ultimate purchaser of

of Undyed Diesel

kerosene used in commercial aviation (other than foreign

Claimant. For line 7a, the registered ultimate vendor of the

trade) is eligible to make this claim. For lines 5c, 5d, and 5e,

diesel is the only person eligible to make this claim and has

the ultimate purchaser of kerosene used in noncommercial

obtained the required certificate from the buyer and has no

aviation (except for nonexempt, noncommercial aviation and

reason to believe any information in the certificate is false.

exclusive use by a state, political subdivision of a state, or the

See Model Certificate P in Pub. 510. Only one claim may be

District of Columbia) is eligible to make this claim. Claimant

filed for any gallon of diesel.

certifies that the right to make the claim has not been waived.

Allowable sales. The fuel must have been sold during the

Allowable uses. For lines 5a and 5b, the kerosene must

period of claim for the exclusive use by a state or local

have been used during the period of claim in commercial

government (including essential government use by an

aviation. If the claimant buys kerosene partly for use in

Indian tribal government).

commercial aviation and partly for use in noncommercial

aviation, see the rules in Notice 2005-80, section 3(e)(3).

Claim requirements. The following requirements must be

For lines 5c and 5d, the kerosene must have been used

met.

during the period of claim for type of use 1, 9, 10, 11, 13, 15,

1. The claim must be for diesel sold during a period that

or 16.

is at least 1 week.

Instructions for Form 720 (Rev. 12017)

Instructions For Form 720 - 2017 Page 14

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