Claim the Non-Taxable Use of Aviation Gasoline Online
- Fast, Accurate Schedule C Filing

IRS Form 8849 Schedule 1

What Is the Non-Taxable Use of Aviation Gasoline?

  • Aviation gasoline in the United States typically has an IRS-imposed Federal Excise Tax. Some aviation operations are subject to a credit or refund if the fuel is consumed in the course of non-taxable operations other than taxable aviation operations.
  • The credit can be claimed by eligible taxpayers by use of Schedule C with Form 720 (Quarterly Federal Excise Tax Return). In some cases, the refund could also be requested and is done through filling out Form 8849 (Claim for Refund of Excise Taxes).
  • These provisions enable businesses and organizations to claim a refund of the Federal Excise Tax paid on aviation gasoline to be used in qualifying activities.

Occurrences for Non-Taxable Use of Aviation Gasoline

Government Aviation
Operations

Federal, state, or local government agencies that use an aircraft on official business activity could be eligible to receive fuel tax credits.

Qualified Nonprofit or
Emergency Services

Non-profit aviation services such as humanitarian or emergency response flights are also potentially eligible as long as they comply with IRS requirements.

Other Qualified Aviation
Activities

Fuel tax credits may also apply to some aviation operations that are classified as being under IRS-approved non-taxable categories.

Use of Schedule C to Claim Aviation Gasoline

Purpose of Schedule C

  • Federal excise tax credits are reported on Schedule C.

  • It enables companies to claim credit for the eligible aviation gasoline consumed in non-taxable qualifying activities.

  • The structure ensures that aviation gasoline tax credits are computed and reported as per the IRS guidelines.

Filing Schedule C with Form 720

  • When filing Form 720, Schedule C should be attached.

  • The schedule determines the kind of aviation gasoline consumed, and the value of credit is computed considering the relevant IRS tax rate.

How to Claim Non-Taxable Aviation Gasoline

STEP 1

Gather Fuel Purchase Records

  • Get receipts of aviation gasoline purchases, which contain the number of gallons sold, date of purchase, and supplier.

  • Keep records that show the usage of fuel in qualifying aviation operations.

STEP 2

Identify Eligible Fuel Usage

  • Separate nontaxable aviation gasoline use from taxable aviation gasoline use in non-aviation activities and tax aviation activities.

  • Keep records of aircraft fuel consumption where necessary.

STEP 3

Complete Schedule C (Form 720)

  • On schedule C, enter the type of aviation gasoline and the amount of qualifying gallons.

  • The amount of credit will be determined based on the Federal Tax Rate of excise on aviation gasoline.

  • Attach Schedule C when submitting your quarterly Form 720.

STEP 4

E-File with an IRS-Authorized Provider

  • File your Form 720 and Schedule C safely using an IRS-Authorized e-filing platform

  • Automated validations provide assistance in the detection of errors before sending the form to the IRS.

STEP 5

Track Filing and Maintain Records

  • Once filed, you will receive an IRS acknowledgment confirming your submission.

  • Retain electronic records of fuel receipts, usage records, and confirmation of filing for at least 4 years to be verified by the IRS.

Industries That Claim Non-Taxable Aviation Gasoline

Industry Eligible Aircraft & Uses
Government Agencies Aircraft used for official governmental operations
Emergency Aviation Services Aircraft used for rescue, emergency response, or humanitarian operations
Aviation Service Organizations Certain nonprofit or approved aviation programs

Documentation Required

Fuel Purchase Documentation

  • The purchase of fuel in gallons, the date of purchase, and the purchase fuel supplier should be clearly stated on the fuel receipts.

  • Purchase documentation must be accurate to claim the fuel tax credit.

Operational Usage Records

  • Keep records of the utilization of aviation gasoline in qualified activities.

  • Separate the use of qualifying non-taxable operations and the taxable use of aviation whenever possible.

Important IRS Forms, Schedules, and Fuel Tax Rates

IRS Form / Schedule IRS Number Purpose Filing Frequency
Quarterly Federal Excise Tax Return Form 720 Reports federal excise taxes and related credits Quarterly
Claims for Excise Tax Credits Schedule C (Form 720) Reports aviation gasoline tax credits Quarterly
Claim for Refund of Excise Taxes Form 8849 Requests refunds of certain excise taxes As Needed
Fuel Tax Refund Claims Schedule 1 (Form 8849) Used to claim fuel tax refunds As Needed

Federal Fuel Tax Rate for Aviation Gasoline

Fuel Type IRS Excise Tax Rate
Aviation Gasoline 19.4 cents per gallon (as of 2026 per IRS Pub 510; confirm latest at irs.gov)

(Rates may change based on IRS updates.)

Advantages of E-Filing through E-File720

Faster Processing

  • E-filing allows aviation gasoline claims to be sent directly to the IRS.

  • Companies get prompt approval after they have submitted the form.

  • Postal delays associated with paper filing are eliminated.

Improved Accuracy

  • Automated calculations guarantee that the right credit for aviation gasoline is computed.

  • In-built checks prevent submission of incomplete or wrong information by providing built-in validations.

  • This eliminates the mistakes that are common with manual filing.

Secure Data Transmission

  • Encryption technology secures fuel information and confidential data of the taxpayers.

  • Ensures that the filing is accurate and safe through the use of an IRS-Authorized transmission.

  • Digital records are safely stored to be accessed later.

Convenient Record Management

  • Aviation gasoline purchasing records and claims can be stored within a single platform.

  • Digital storage provides assistance in organizing records without using paper documentation.

  • This makes record-keeping easier with regard to IRS compliance.

Efficient Compliance Tracking

  • Businesses can keep track of their claims on aviation gasoline credits online.

  • Reminders on quarterly filing will help ensure that deadlines are not missed.

  • This assists in keeping proper reporting and regulatory compliance.

Begin Your Non-Taxable Aviation Gasoline Claim today

Claim eligible Aviation Gasoline Tax credits by efiling Schedule C with Form 720 using efile720.com, which is a secure IRS-approved e-filing service.

File Form 720 Now

Frequently Asked Questions

The non-taxable use of aviation gasoline occurs when the aviation gasoline is utilized in other activities that qualify for the exemption of the federal aviation gasoline excise tax.

The aviation gasoline credits are generally reported under Schedule C, which is an accompaniment of Form 720 by businesses.

The current federal excise tax imposed by the IRS on aviation gasoline is 19.4 cents per gallon (as of 2026, per IRS Pub 510; verify at irs.gov)

The businesses are supposed to retain purchase receipts of aviation gasoline, records of usage, and documentation that will verify that the fuel was consumed in the qualifying activities.

Yes, Form 720 and Schedule C are also eligible to be filed electronically over an IRS-approved e-filing provider.