Diesel Fuel Allowance Formulas

The following allowance formulas have been derived through tests and may be used by eligible taxpayers. Documentation must be retained or credit will be disallowed upon audit.

Allowance Type allowance credit
Gasoline or Fuel Oil Pumped 1.5 gallons per 10,000 gallons pumped
Bulk Cement 4 gallons per 22.5 tons pumped
Lime 3.14 gallons per ton pumped
Calcium Crystals 4.13 gallons per hour
Grain (dairy pellets) 0.13 gallons per ton
Grain Meal (mash) 0.225 gallons per ton
Rubbish Vehicles 15% of fuel used in compactors, recycling vehicles, and roll-offs
Walking Floor Trailers 1.25 gallons per 440 cubic yards (max)
Log Loading Allowance 3.5 gallons for complete load and unload
Ready-mix Concrete 0.336 gallons per cubic yard
Reefers 0.50 gallons per hours (must maintain hour meter readings to support refund request)
Tractor-trailers with separate tanks for the refrigerated unit must submit actual fuel receipts with their refund requests.

In most cases, the gallons allowed for diesel credit are subject to Vermont sales and Use tax at 6% of the cost of the fuel (including tax). Registration is also required with the Vermont Department of Taxes, for further information call (802) 828-2551.

For all allowances, the vehicle MPG must be recalculated after excluding the allowance fuel. The resulting MPG must be reasonable considering the size, type, and usage of the vehicle(s).

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Montpelier, VT 05603-0001

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