Motor Fuel Cost Savings
Potential excise tax refund opportunities for state and government agencies and local government
State and local government agencies purchase and consume significant amounts of fuel — for fleets, public transportation, construction equipment, safety equipment, and for powering equipment and vehicles for off-road use.
Federal and state excise taxes are imposed on motor fuels such as gasoline and diesel fuel; however, several exemptions apply, including exemptions for purchases by state government agencies and local governments. The applicable exemptions allow state and local governments and their agencies to recover amounts paid for federal and state excise taxes on fuel purchased for nontaxable use.
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