The federal government charges excise taxes on certain types of fuels. There are, however, some nontaxable uses of these fuels, for which the purchaser can claim a credit.
You may be eligible if you paid fuel excise taxes for qualifying fuel types listed here and used the fuel for nontaxable purposes. Some examples of nontaxable uses include:
- On a farm for farming purposes
- In a school bus
- In a boat engaged in commercial fishing