Claim Credits on Aviation Kerosene Sales

IRS Form 8849 Schedule 1

Sales by Registered Ultimate Vendors of Kerosene for Use in Aviation Credit

  • Sales by Registered Ultimate Vendors of Kerosene for Use in Aviation (Schedule C - Lines 9a-9f) credit permits registered ultimate vendors to take a federal excise tax credit on kerosene used in aviation (jet fuel) sold at tax-excluded prices, but where tax had previously been imposed and used in other aviation eligible purposes.
  • Type of fuel: This is applied to kerosene used in aviation (jet fuel).
  • Eligible Claimant: This must be a registered ultimate vendor of the IRS.
  • Single Claim Rule: There is a limitation of one claim per gallon of the aviation kerosene sold.
  • Method of Filing: Schedule C (Form 720), Lines 9a-9f according to IRS type-of-use and CRN.

Eligible Vendor for Aviation Kerosene Credit Claims

A qualified claimant is a registered ultimate vendor of aviation kerosene who sells fuel to eligible buyers engaged in approved exempt aviation uses.

Core Eligibility Criteria

IRS Registration as Ultimate Vendor

  • The company should be registered by the IRS (usually under Form 637). Claims cannot be made without proper registration.

Sale of Aviation Kerosene

  • Under IRS regulations, the kerosene should be of aviation-grade kerosene (jet fuel) and at tax-exempt prices with a valid waiver or certificate issued by the purchaser.

Qualified Aviation Use

  • Commercial aviation exempt categories (as defined by the IRS).
  • Aviation activity of the state or local government.
  • Other exempt aviation uses approved by the IRS.

Buyer Certification / Waiver Requirement

  • Model Certificate P (qualified use confirmation), or
  • Model Waiver L (buyer assigns credit rights to vendor).

Required Documentation Templates

Download IRS-provided templates

  • Model Waiver L: Ultimate vendor claims buyer's credit rights (use for all lines 9a-9f).

  • Model Certificate P: Confirms buyer's nontaxable aviation use.

Keep signed originals for 4 years; digital scans acceptable for e-filing.

Accurate Schedule C Reporting (Form 720)

  • Line 9a: Kerosene used in commercial aviation

  • Line 9c: Nonexempt noncommercial aviation (CRN 346)

  • Line 9d: Nontaxable aviation uses (CRN 369)

  • Line 9e: Other nontaxable aviation uses (CRN 355)

Correct gallons, applicable rate, and matching CRN.

Aviation Kerosene Credit Rates

Use Category Line CRN Credit Rate Eligible Buyers / Use
Nontaxable Aviation Uses 9d 369 $0.218/gallon Nontaxable aviation (e.g., commercial)
Nontaxable Aviation Uses 9e 355 $0.175/gallon Nontaxable aviation (other uses)
Nonexempt Noncommercial 9c 346 $0.025/gallon Nonexempt noncommercial aviation

CRN Selection Guide

CRN 346 (Line 9c)

Nonexempt noncommercial aviation

$0.025/gal

CRN 369 (Line 9d)

Nontaxable aviation uses

$0.218/gal

CRN 355 (Line 9e)

Other nontaxable aviation

$0.175/gal

IRS denies claims that do not match the correct rate and CRN.

Claim Amount and Claim Period

Claim Period

  • The sales of fuel must cover at least one 7-day period.

  • Usually reported every quarter in Form 720 (Schedule C).

Minimum Claim Requirement

  • Claims on Schedule C should be combined, meeting the IRS threshold (total claims must be at least 200).

  • Threshold rules are different on Form 8849 refunds.

Steps to File Your Aviation Kerosene Vendor Credit

STEP 1

Vendor Registration Confirmation.

  • Check the IRS registration as the ultimate vendor and confirm all buyer certificates/waivers.

STEP 2

Gather Sales Data

  • Keep logs of gallons sold, type of buyer, and invoice information.

STEP 3

Credit amount calculation.

  • Determine credit based on aviation use category and CRN using current IRS rates.

STEP 4

Complete Schedule C (Form 720)

Report gallons on:

  • Line 9d (CRN 369) for $0.218/gallon nontaxable uses

  • Line 9e (CRN 355) for $0.175/gallon nontaxable uses

  • Line 9c (CRN 346) for $0.025/gallon nonexempt uses

Add the correct type of use and CRN in column (c).

STEP 5

Submit Electronically

  • Submit through the IRS Modernised e-File (MeF) system and get an acknowledgement.

Record-Keeping Checklist

Maintain for 4 years:

  • Buyer name, address, EIN.

  • Signed Waiver L/Certificate P

  • Invoices with tax-exempt price and gallons.

  • Delivery check (bill of lading, manifest)

Preferred digital storage to support e-file audit.

Benefits of E-Filing Aviation Kerosene Claims

Faster Processing

  • E-filing makes the process faster and minimizes the IRS turnaround time.

Improved Accuracy

  • The automated calculations reduce the error in lines 9a-9f reporting and rate application.

Secure Submission

  • Sensitive filing information is safeguarded in encrypted IRS-authorized systems.

Centralized Record Management

  • Ensure that all aviation kerosene records are digitally maintained to be audited.

Common Mistakes to Avoid

Making more than one claim on the same gallon.

Submission of filings with no valid certificates or waivers.

Mixing aviation kerosene and aviation gasoline.

Wrong type of use selection or CRN.

Failure to keep records for at least 4 years.

Start Your Aviation Kerosene Credit Claim Today

Complete and claim aviation kerosene tax credits on your Schedule C (Form 720) Lines 9a-9f with no delays or compliance risks.

File Form 720 Now

Frequently Asked Questions

It enables vendors to receive an excise tax credit on kerosene used in aviation for the types of purposes that are nontaxable.

Only ultimate and registered vendors registered by the IRS with the appropriate documentation and qualified sales of fuel.

On Schedule C (Form 720), Lines 9a-9f: 9c (CRN 346), 9d (CRN 369), 9e (CRN 355).

Yes, in certain cases, a valid waiver (e.g., Model Waiver L) is required.

Total claims must be at least $200.