Unlock Your Aviation Gasoline Tax Credit: Line 11 Simplified

720_ScheduleC_Claims_img02b

What Is the Sales by Registered Ultimate Vendors of Aviation Gasoline Credit?

  • The Sales by Registered Ultimate Vendors of Aviation Gasoline (Schedule C - Line 11) credit enables eligible vendors to take credit for the federal excise tax on aviation gasoline that was sold at a tax-paid price, but applied to eligible purposes exempt from tax.
  • This aviation gasoline tax credit specifically targets those vendors who are providing aviation gasoline to qualified users like government organizations and nonprofit organizations under the specific IRS-regulated terms.
  • Fuel Type: This is limited only to aviation gasoline (avgas), not aviation kerosene or jet fuel.
  • Eligible Claimant: This has to be a registered ultimate vendor permitted by the IRS.
  • Single Claim Rule: A gallon of aviation gasoline cannot be claimed twice.
  • Reporting Method: To be reported on Schedule C (Form 720), Line 11, according to IRS type-of-use classifications.

Qualified Vendor for Aviation Gasoline Credit Claims

A qualified claimant is a registered ultimate seller of aviation gasoline who sells fuel to qualified purchasers for exempt uses that are permitted under federal excise tax regulations.

Core Eligibility Criteria

Registration with IRS as Ultimate Vendor

  • The company should be registered with the IRS (usually under Form 637). Claims of the aviation gasoline tax credit will not be received without a valid registration.

Sale of Tax-Paid Aviation Gasoline

  • The aviation gasoline should be retailed at a tax-paid price and should be subject to federal excise tax laws on aviation fuel.

Qualified End Use of Fuel

The aviation gasoline should be sold to be utilized by:

  • Local or state governments.
  • Non-profit learning institutions.
  • Additional IRS-approved aviation exemptions.

Buyer Certification Requirement

  • Vendors are required to receive a Model Certificate M declaring the eligibility and waiver of claim rights by the buyer.

Accurate Schedule C Reporting (Form 720)

Claims must be reported under:

  • Schedule C (Form 720), Line 11
  • Correct gallons and applicable rate
  • Proper classification of buyer type

Aviation Gasoline Credit Rates

Use Category Credit Rate Eligible Buyers/Use Vendor Requirement
Nonprofit Educational Use $0.193 per gallon Schools and educational institutions Valid certificate from the buyer
State / Local Government Use $0.193 per gallon Government and tribal entities Proof of exempt usage

Claim Amount and Claim Period

Claim Period

  • tick

    Aviation gasoline has to be sold within a minimum of one week.

  • tick

    Typically reported quarterly using Form 720 (Schedule C)

Minimum Claim Requirement

  • tick

    The amount of the total aviation gasoline tax credit claim must be $200.

  • tick

    Claims from related lines can be combined to meet the threshold

Steps to File Your Aviation Gasoline Tax Credit

STEP 1

Vendor Registration check

  • tick

    Make sure that you are registered with the IRS as a registered ultimate vendor of aviation gasoline.

  • tick

    Make sure that buyer certificates (Model Certificate M) are valid and up to date.

STEP 2

Gather Sales Data

  • tick

    Record details of aviation gasoline gallons sold and buyer type.

  • tick

    Keep invoices, the date of transactions, and sales information to aid auditing.

STEP 3

Determine the Amount of credit

  • tick

    Calculate credit: Eligible gallons x $0.193 per gallon.

  • tick

    Only qualified sales are to be included that meet the requirements of the aviation gasoline tax credit.

STEP 4

Finish Schedule C (Form 720)

  • tick

    Record reporting information and report gallons on line 11.

  • tick

    Check against any duplication of claims, correct use of rates, and buyer classification.

STEP 5

Submit Electronically

  • tick

    Processes through the IRS Modernized e-File (MeF) system.

  • tick

    Get immediate recognition and enjoy expedited processing.

Benefits of E-Filing Aviation Gasoline Claims

schedule_c_claims_icon_005

Faster Processing

  • E-filing enhances the speed of filing of aviation gasoline tax credit claims.

  • Obtain faster IRS recognitions and minimize total turnaround.

schedule_c_claims_icon_006

Improved Accuracy

  • Automated systems minimize Line 11 reporting and gallon-to-credit errors.

  • With built-in validations, missing data and wrong submissions are detected.

schedule_c_claims_icon_004

Secure Submission

  • Data is transferred via encrypted systems authorized by the IRS.

  • Secures the sensitive fuel sales and taxpayer information.

schedule_c_claims_icon_007

Centralized Record Management

  • Keep all the aviation gasoline records and filings at a single point for easy access.

  • Streamlines audit preparedness using structured, retrievable electronic records.

Common Mistakes to Avoid

tick

Counting the same gallon of aviation gasoline twice.

tick

Filing without a legitimate Model Certificate M.

tick

Improper classification of buyers.

tick

Failure to report via the valid IRS line.

tick

Failure to keep records for at least 4 years.

Start Your Aviation Gasoline Tax Credit Claim Today

Claim your Schedule C (Form 720) Line 11 properly and claim eligible amounts of aviation gasoline tax credit without delays or compliance risks.

File Form 720 Now

Frequently Asked Questions

It is a federal credit of an excise tax on aviation gasoline sold to qualified exempt uses.

Only ultimate vendors registered by the IRS and who have met all documentation and eligibility requirements.

On Schedule C, which was attached to Form 720 (Line 11).

Yes. The aviation gasoline tax credit is claimed with a valid Model Certificate M.

A minimum of $200 applies for Schedule C filings.