§Company XYZ owns and operates a public CNG fueling
station.For every gge they sell, they owe 18.3 cents of excise tax,
but receive 50 cents worth
of excise tax credit.They periodically
submit a form to the IRS,
submit no money and receive a check for 31.7 cents per gge sold.
§Transit company ABC owns their LNG station. They are
exempt from paying the excise
tax.They periodically submit a form
to the IRS and receive a check for
50 cents per LNG gallon used.
§Company XYZ owns a CNG fueling station that sells fuel
to a school district.Since school districts are exempt from the
excise tax, XYZ owes no
tax.They periodically submit a form to
the IRS and receive a check for
50 cents per gge of CNG sold.
§Harry Homeowner owns a PHILL.For every gge he uses, he owes the IRS 18.3 cents of excise tax. He’s eligible for the
excise tax credit, but, since he
isn’t using the fuel in a trade or business, he can only receive a credit up to 18.3 cents a gge.What forms, if any, he will be required to submit to the IRS is unclear.