FuelCred, a new mobile application, is now available to help small businesses apply for federal tax credits for gasoline or diesel fuel used in off-road equipment.

Landscapers can now save about $0.20/gallon on fuel used in mowers, tractors, generators, etc., regardless of whether they owe any other tax to the federal government.

“FuelCred automates tracking of off-road fuel use, applies the correct tax treatment using IRS rules and generates form 4136, the form the IRS requires to apply for fuel tax credits,” said Joe Chan, head of technology for FuelCred. “Previously, only big companies using teams of accountants at top-tier accounting firms had access to these credits. But now with FuelCred, small companies have that same capability.”

The federal tax credit for diesel fuel is $.243 per gallon, and the federal tax credit for gasoline is $.183 per gallon. The completed IRS Form 4136, “Credit for Federal Tax Paid on Fuels,” must be provided to your CPA or tax preparer to be included as a part of your annual income tax filing.

“Many states also have state-level fuel taxes with a similar ability to apply for a refund. We’re currently working on adding that capability into the FuelCred app. For many, this would at least double the amount of fuel tax refund available,” Chan said. “Plus it’s free to sign-up. You only pay if you want to generate the IRS form and claim the refund.”