Agricultural Off-Highway Gas or Undyed Diesel Fuel (code 47)

UC §59-13-202 and Rule R865-13G-8

Farmers and ranchers may claim a refundable tax credit on their Utah tax returns for Utah fuels tax paid during the tax year for gasoline and undyed diesel fuel used exclusively for commercial, non-highway agricultural use.

This credit is limited to gasoline or undyed diesel fuel used in stationary or self-propelled farm machinery used solely for non-highway (not on public roads) agricultural purposes.

The current Utah gasoline and diesel fuel tax rate is 29.4 cents per gallon.

The refundable tax credit is limited to those involved in commercial farming activities:

  • producing agricultural crops for resale,
  • raising livestock and other animals useful to man, or
  • performing custom agricultural work using non-highway farm equipment.

Activities that do not qualify for this credit include golf courses, horse racing, boat operations, highway seeding, vehicles registered for highway use, hobbies, farming for personal use, and other non-agricultural use.

The credit is not allowed for purchases of fuel used in any vehicle registered for highway use, or for dyed diesel fuel (dyed diesel fuel purchases are exempt from fuel tax).

There is no form for this credit. Keep legible copies of all purchase invoices, receipts, etc., with your tax records to substantiate the tax credit. The receipts should show:

  1. The name and address of the taxpayer;
  2. The number of gallons and type of motor fuel purchased;
  3. Where the fuel was purchased; and
  4. The date and amount of the purchase.

Cancelled checks do not meet the above criteria to adequately substantiate off-highway fuel purchases.

Agricultural Off-Highway Gas or Undyed Diesel Fuel Tax Credit Calculation
1. Number of qualified gallons purchased  
2. Tax rate .294
3. Calculated credit – multiply line 1 by line 2 $

Enter the credit from line 3 above on your Utah TC-40A, Part 5, using code 47.