Fuels Used in Farming You may be eligible to claim a credit or refund of excise taxes onfuel used on a farm for farming purposes. This applies if you are theowner, tenant, or operator of a farm. You may claim only a credit forthe tax on gasoline used on a farm for farming purposes. You may claimeither a credit or refund for the tax on aviation fuel used on a farmfor farming purposes. You cannot claim a credit or refundfor the tax on undyed diesel fuel or undyed kerosene used on a farmfor farming purposes or for any use of dyed diesel fuel or dyedkerosene. Farm.A farm includes livestock, dairy, fish, poultry, fruit, fur-bearinganimals, and truck farms, orchards, plantations, ranches, nurseries,ranges, and feed yards for fattening cattle. It also includesstructures such as greenhouses used primarily for raising agriculturalor horticultural commodities. A fish farm is an area where fish aregrown or raised -- not merely caught or harvested. You mustoperate the farm for profit. It must be located in any of the 50states or the District of Columbia. Table 18-1 Farming purposes.You use fuel on a farm for farming purposes if you use it in any ofthe following ways. To cultivate the soil or to raise or harvest anyagricultural or horticultural commodity. To raise, shear, feed, care for, train, or manage livestock,bees, poultry, fur-bearing animals, or wildlife. To operate, manage, conserve, improve, or maintain yourfarm, tools, or equipment. To handle, dry, pack, grade, or store any raw agriculturalor horticultural commodity. For this use to qualify, you must haveproduced more than half the commodity that was so treated during thetax year. Commodity means a single raw product. For example, applesand peaches are two separate commodities. The more-than-one-half testapplies separately to each commodity. To plant, cultivate, care for, or cut trees or to prepare(other than sawing logs into lumber, chipping, or other milling) treesfor market, but only if the planting, etc., is incidental to yourfarming operations. Your tree operations are incidental only if theyare minor in nature when compared to the total farmingoperations. If any other person, such as a neighbor or custom operator,performs a service for you on your farm for any of the purposesincluded in (1) or (2), you can still claim the credit or refund forthe fuel so used (other than for diesel fuel or kerosene). However,see York accommodationCustom application of fertilizer and pesticide, later.If the other person performs any other services for you on your farmfor purposes not included in (1) or (2), no one can claim the creditor refund for fuel used on your farm for those other services. Example.Farm owner Nancy Blue hired custom operator Harry Steele to preparethe soil on her farm for planting. Under the contract, she paid for200 gallons of gasoline to be used by Harry in cultivating the soil onher farm. In addition, she hired Contractor Brown to pack and storeher apple crop. Brown bought 25 gallons of gasoline to use in packingthe apples and was not reimbursed by Nancy. She can claim the creditfor the 200 gallons of gasoline used by Harry on her farm because itqualifies as fuel used on the farm for farming purposes. No one canclaim a credit for the 25 gallons because they were not used for afarming purpose listed in (1) or (2) earlier. Buyer of fuel (other than diesel fuel or kerosene).If doubt exists whether the owner, tenant, or operator of the farmbought the fuel, determine who actually bore the cost of the fuel. Forexample, if the owner of a farm and his tenant share the cost ofgasoline used on the farm 50-50, each can claim a credit for thetax on half the fuel used. Diesel fuel and kerosene.If undyed diesel fuel or undyed kerosene is used for any of thepreviously listed farming purposes, the fuel cannot be considered asbeing used for any other nontaxable use. The credit or refund isallowed only to the registered ultimate vendor. Farmers cannotclaim a refund or credit for this fuel if it is used for farmingpurposes. See How To Buy Diesel Fuel and Kerosene Tax Free,later. A registered ultimate vendor is the person who sellsundyed diesel fuel or undyed kerosene to the user (ultimate purchaser)of the fuel for use on a farm for farming purposes. The ultimatevendor must be registered with the Internal Revenue Service at thetime the claim is made. Custom application of fertilizer and pesticide.Fuel used on a farm for farming purposes includes fuel used in theaerial or other application of fertilizer, pesticides, or othersubstances. You as the owner, tenant, or operator may claim the creditor refund for the fuel (other than for diesel fuel or kerosene). Youmay waive your right to the claim and allow the applicator to make theclaim. If you waive your right, the applicator is then treated ashaving used the fuel on a farm for farming purposes. See How ToClaim a Credit or Refund, later. Waiver.To waive your right to the credit or refund, you must take all thefollowing actions. Interlaken alberghi offerte stagionaliBefore the applicator files his or her claim, sign anirrevocable statement that you knowingly give up your right to thecredit or refund. You may authorize an agent, such as a cooperative,to sign the waiver for you. Identify clearly the period that the waiver covers. Theeffective period of your waiver cannot extend beyond the last day ofyour tax year. The applicator must retain a copy of the waiver and give youa copy. Do not send a copy to the Internal Revenue Serviceunless requested to do so. The waiver may be a separate document or it may appear on aninvoice or another document from the applicator. If the waiver appearson an invoice or other document, it must be printed in a sectionclearly set off from all other material, and it must be printed intype large enough to put you on notice that you are waiving your rightto the credit or refund. If the waiver appears as part of an invoiceor other document, it must be signed separately from any other itemthat requires your signature. Sign a separate waiver for each tax year or part of a tax year inwhich the fuel was used. When the period covered by the waiver extendsbeyond the applicator's tax year, the applicator must wait until thenext tax year to claim the portion for that period. Sample form of waiver.While no specific form is required, an acceptable statement waivingyour right to claim a credit or refund is shown in Table18-2. Fuel not used for farming.You do not use fuel on a farm for farming purposes when you use itin any of the following ways. Off the farm, such as on the highway or in noncommercialaviation, even if the fuel is used in transporting livestock, feed,crops, or equipment. For personal use, such as mowing the lawn. In processing, packaging, freezing, or canningoperations. In processing crude gum into gum spirits of turpentine orgum resin or in processing maple sap into maple syrup or maplesugar. All-terrain vehicles (ATVs).Fuel used in ATVs on a farm for farming purposes, discussedearlier, is eligible for a credit or refund of excise taxes on thefuel. Fuel used in ATVs for nonfarming purposes is not eligible for acredit or refund of the taxes. If ATVs are used both for farming andnonfarming purposes, only that portion of the fuel used for farmingpurposes is eligible for the credit or refund. Table 18-2