ExpressIFTA Blog

Tuesday, May 5, 2015

IFTA | Reefer Fuel

I'm a big believer in being prepared for everything and I've learned truckers are the same way. You never know what can happen so it's always best to be prepared for anything, including your 2nd Quarter IFTA filing. When it comes to IFTA filing, you can never be too prepared and the learning never ends. The rules governing IFTA are a bit lengthy and every single state is different, but don't let that stress you out. IFTA is a lot easier when it is broken down, so let's go over Reefer Fuel and why it's not included in IFTA filing and how you could receive a Federal Tax Refund for Reefer Fuel...

IFTA & Reefer Fuel
When filing your IFTA return, you will not include reefer fuel. The reasoning is because reefer fuel is used to power the refrigeration unit of the trailer and not the truck itself, so it must be listed on a separate fuel receipt. Having the reefer fuel separated from the fuel for your power unit makes it a lot easier when filing for your federal tax refund, but we will get to that shortly. 

Reefer Fueling
You always want to pump your reefer fuel on a separate fuel receipt than the fuel used for your power unit. If your reefer fuel is combined on the same receipt as your power unit, it can lower your mpg and cost you more IFTA fuel tax. If you are selected for an IFTA Audit, and it is discovered that you combined reefer fuel into your power unit fuel you will be penalized and incur added interest on your audit. 

Federal Tax Refund for Reefer Fuel
You can receive a federal tax paid refund on each gallon of reefer fuel. To receive your refund all you will need to do is total the amount of reefer fuel purchased during the tax year (in gallons), and then complete the refund form. You can even claim a credit for the past 3 years if you have failed to file this refund. Because each one is different, you will need to contact your base jurisdiction for more information on claiming the Reefer Fuel Tax Credit. 

In Utah, for example, you must attach receipt copies or a schedule to document all fuel dispensed into the reefer unit. Include the receipt date and number, vendor, city and state where fuel was dispensed, gallons dispensed and the total purchase price. 

So if you are operating an IFTA "Qualified Motor Vehicle" with a reefer unit, make sure to have the reefer fuel on a separate fuel receipt and don't include reefer fuel on your IFTA return. 

For more easy IFTA information, check out my blogs:

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