# 26 U.S.C. § 6420: Gasoline used on farms Source: OLRC release point 119-134 . Cite pinpoints as 26 U.S.C. § 6420(a)(1). ## § 6420(a) Gasoline Except as provided in subsection (g), if gasoline is used on a farm for farming purposes, the Secretary shall pay (without interest) to the ultimate purchaser of such gasoline the amount determined by multiplying— **§ 6420(a)(1)** the number of gallons so used, by **§ 6420(a)(2)** the rate of tax on gasoline under section 4081 which applied on the date he purchased such gasoline. ## § 6420(b) Time for filing claims; period covered Not more than one claim may be filed under this section by any person with respect to gasoline used during his taxable year, and no claim shall be allowed under this section with respect to gasoline used during any taxable year unless filed by such person not later than the time prescribed by law for filing a claim for credit or refund of overpayment of income tax for such taxable year. For purposes of this subsection, a person’s taxable year shall be his taxable year for purposes of subtitle A. ## § 6420(c) Meaning of terms For purposes of this section— **§ 6420(c)(1) Use on a farm for farming purposes.** Gasoline shall be treated as used on a farm for farming purposes only if used (A) in carrying on a trade or business, (B) on a farm situated in the United States, and (C) for farming purposes. **§ 6420(c)(2) Farm.** The term “farm” includes stock, dairy, poultry, fruit, fur-bearing animal, and truck farms, plantations, ranches, nurseries, ranges, greenhouses or other similar structures used primarily for the raising of agricultural or horticultural commodities, and orchards. **§ 6420(c)(3) Farming purposes.** Gasoline shall be treated as used for farming purposes only if used— **§ 6420(c)(3)(A)** by the owner, tenant, or operator of a farm, in connection with cultivating the soil, or in connection with raising or harvesting any agricultural or horticultural commodity, including the raising, shearing, feeding, caring for, training, and management of livestock, bees, poultry, and fur-bearing animals and wildlife, on a farm of which he is the owner, tenant, or operator; **§ 6420(c)(3)(B)** by the owner, tenant, or operator of a farm, in handling, drying, packing, grading, or storing any agricultural or horticultural commodity in its unmanufactured state; but only if such owner, tenant or operator produced more than one-half of the commodity which he so treated during the period with respect to which claim is filed; **§ 6420(c)(3)(C)** by the owner, tenant, or operator of a farm, in connection with— **§ 6420(c)(3)(C)(i)** the planting, cultivating, caring for, or cutting of trees, or **§ 6420(c)(3)(C)(ii)** the preparation (other than milling) of trees for market, incidental to farming operations; or **§ 6420(c)(3)(D)** by the owner, tenant, or operator of a farm, in connection with the operation, management, conservation, improvement, or maintenance of such farm and its tools and equipment. **§ 6420(c)(4) Certain farming use other than by owner, etc..** In applying paragraph (3)(A) to a use on a farm for any purpose described in paragraph (3)(A) by any person other than the owner, tenant, or operator of such farm— **§ 6420(c)(4)(A)** the owner, tenant, or operator of such farm shall be treated as the user and ultimate purchaser of the gasoline, except that **§ 6420(c)(4)(B)** if the person so using the gasoline is an aerial or other applicator of fertilizers or other substances and is the ultimate purchaser of the gasoline, then subparagraph (A) of this paragraph shall not apply and the aerial or other applicator shall be treated as having used such gasoline on a farm for farming purposes. In the case of an aerial applicator, gasoline shall be treated as used on a farm for farming purposes if the gasoline is used for the direct flight between the airfield and one or more farms. **§ 6420(c)(5) Gasoline.** The term “gasoline” has the meaning given to such term by section 4083(a). ## § 6420(d) Exempt sales; other payments or refunds available No amount shall be payable under this section with respect to any gasoline which the Secretary determines was exempt from the tax imposed by section 4081. The amount which (but for this sentence) would be payable under this section with respect to any gasoline shall be reduced by any other amount which the Secretary determines is payable under this section, or is refundable under any provision of this title, to any person with respect to such gasoline. ## § 6420(e) Applicable laws **§ 6420(e)(1) In general.** All provisions of law, including penalties, applicable in respect of the tax imposed by section 4081 shall, insofar as applicable and not inconsistent with this section, apply in respect of the payments provided for in this section to the same extent as if such payments constituted refunds of overpayments of the tax so imposed. **§ 6420(e)(2) Examination of books and witnesses.** For the purpose of ascertaining the correctness of any claim made under this section, or the correctness of any payment made in respect of any such claim, the Secretary shall have the authority granted by paragraphs (1), (2), and (3) of section 7602(a) (relating to examination of books and witnesses) as if the claimant were the person liable for tax. **§ 6420(e)(3) Fractional parts of a dollar.** Section 7504 (granting the Secretary discretion with respect to fractional parts of a dollar) shall not apply. ## § 6420(f) Regulations The Secretary may by regulations prescribe the conditions, not inconsistent with the provisions of this section, under which payments may by made under this section. ## § 6420(g) Income tax credit in lieu of payment **§ 6420(g)(1) Persons not subject to income tax.** Payment shall be made under subsection (a), only to— **§ 6420(g)(1)(A)** the United States or an agency or instrumentality thereof, a State, a political subdivision of a State, or an agency or instrumentality of one or more States or political subdivisions, or **§ 6420(g)(1)(B)** an organization exempt from tax under section 501(a) (other than an organization required to make a return of the tax imposed under subtitle A for its taxable year). **§ 6420(g)(2) Allowance of credit against income tax.** For allowance of credit against the tax imposed by subtitle A, see section 34. ## § 6420(h) Repealed. Pub. L. 103–66, title XIII, § 13241(f)(5), Aug. 10, 1993, 107 Stat. 512] ## § 6420(i) Cross references **§ 6420(i)(1)** For exemption from tax in case of special fuels used on a farm for farming purposes, see section 4041(f). **§ 6420(i)(2)** For civil penalty for excessive claim under this section, see section 6675. **§ 6420(i)(3)** For fraud penalties, etc., see chapter 75 (section 7201 and following, relating to crimes, other offenses, and forfeitures). **§ 6420(i)(4)** For treatment of an Indian tribal government as a State (and a subdivision of an Indian tribal government as a political subdivision of a State), see section 7871. ## Regulations - [Treas. Reg. § 48.6420-1](/26/reg/48.6420-1.md): Credits or payments to ultimate purchaser of gasoline used on a farm. (interprets § 6420) - [Treas. Reg. § 48.6420-2](/26/reg/48.6420-2.md): Time for filing claim for credit or payment. (interprets § 6420) - [Treas. Reg. § 48.6420-3](/26/reg/48.6420-3.md): Exempt sales; other payments or refunds available. (interprets § 6420) - [Treas. Reg. § 48.6420-4](/26/reg/48.6420-4.md): Meaning of terms. (interprets § 6420) - [Treas. Reg. § 48.6420-5](/26/reg/48.6420-5.md): Applicable laws. (interprets § 6420) - [Treas. Reg. § 48.6420-6](/26/reg/48.6420-6.md): Records to be kept in substantiation of credits or payments. (interprets § 6420) - [Treas. Reg. § 48.6420(a)-2](/26/reg/48.6420(a)-2.md): Gasoline includible in claim. (interprets § 6420(a)) ## Forms named in the regulations - [Form 4136](https://www.irs.gov/pub/irs-pdf/f4136.pdf) - [Form 1065](https://www.irs.gov/pub/irs-pdf/f1065.pdf) - [Form 843](https://www.irs.gov/pub/irs-pdf/f843.pdf) ## Final rules - [65 FR 17149](https://www.federalregister.gov/documents/2000/03/31/00-7351/kerosene-tax-aviation-fuel-tax-taxable-fuel-measurement-and-reporting-tax-on-heavy-trucks-and) (2000): Kerosene Tax; Aviation Fuel Tax; Taxable Fuel Measurement and Reporting; Tax on Heavy Trucks and Trailers; Highway Vehicle Use Tax ## Leading cases - [Crop Care Applicators, Inc. v. Commissioner, T.C. Summ. Op. 2001-21](https://www.courtlistener.com/opinion/4555910/crop-care-applicators-inc-v-commissioner/) ## Connections Cites: § 34 Certain uses of gasoline and special fuels; § 501 Exemption from tax on corporations, certain trusts, etc.; § 4041 Imposition of tax; § 4081 Imposition of tax; § 4083 Definitions; special rule; administrative authority; § 6675 Excessive claims with respect to the use of certain fuels; § 7201 Attempt to evade or defeat tax; § 7602 Examination of books and witnesses; § 7871 Indian tribal governments treated as States for certain purposes Cited by: § 34 Certain uses of gasoline and special fuels; § 147 Other requirements applicable to certain private activity bonds; § 451 General rule for taxable year of inclusion; § 1274 Determination of issue price in the case of certain debt instruments issued for property; § 4041 Imposition of tax; § 4084 Cross references; § 6206 Special rules applicable to excessive claims under certain sections; § 6421 Gasoline used for certain nonhighway purposes, used by local transit systems, or sold for certain exempt purposes; § 6427 Fuels not used for taxable purposes; § 6504 Cross references; § 6511 Limitations on credit or refund; § 6675 Excessive claims with respect to the use of certain fuels; § 7603 Service of summons; § 7604 Enforcement of summons; § 7605 Time and place of examination; § 7609 Special procedures for third-party summonses; § 7610 Fees and costs for witnesses; § 9502 Airport and Airway Trust Fund ## Prior provisions - A prior section 6420 was renumbered section 6422 of this title. ## Amendments - 1956-04-02: [Act Apr. 2, 1956, ch. 160](/26/act/1956-ch160.md), 70 Stat. 87 - 1958-09-02: [Pub. L. 85-859](/26/act/85-859.md), 72 Stat. 1311 - 1965-06-21: [Pub. L. 89-44](/26/act/89-44.md), 79 Stat. 165 - 1970-05-21: [Pub. L. 91-258](/26/act/91-258.md), 84 Stat. 242 - 1976-10-04: [Pub. L. 94-455](/26/act/94-455.md), 90 Stat. 1827 - 1978-10-14: [Pub. L. 95-458](/26/act/95-458.md), 92 Stat. 1257 - 1983-01-06: [Pub. L. 97-424](/26/act/97-424.md), 96 Stat. 2172 - 1983-01-14: [Pub. L. 97-473](/26/act/97-473.md), 96 Stat. 2610 - 1984-07-18: [Pub. L. 98-369](/26/act/98-369.md), 98 Stat. 846 - 1986-10-17: [Pub. L. 99-499](/26/act/99-499.md), 100 Stat. 1778 - 1987-04-02: [Pub. L. 100-17](/26/act/100-17.md), 101 Stat. 257 - 1989-12-19: [Pub. L. 101-239](/26/act/101-239.md), 103 Stat. 2429 - 1990-11-05: [Pub. L. 101-508](/26/act/101-508.md), 104 Stat. 1388 - 1991-12-18: [Pub. L. 102-240](/26/act/102-240.md), 105 Stat. 2203 - 1993-08-10: [Pub. L. 103-66](/26/act/103-66.md), 107 Stat. 512 - 2005-08-10: [Pub. L. 109-59](/26/act/109-59.md), 119 Stat. 1951 - 2018-03-23: [Pub. L. 115-141](/26/act/115-141.md), 132 Stat. 1198