Bus Exemption

What Qualifies?

1. A bus or motorcoach used for intercity or local travel, designed for 20 or more passengers, qualifies for a federal tax credit of $.17 per gallon when transporting for compensation.
2. A bus or motorcoach designed for 20 or more passengers along regular routes.
3. A bus or motorcoach designed for 20 or more passengers that transports students or school employees qualifies for an additional $.243

If your company qualifies and has not taken advantage of this tax exemption, you are eligible to go back 3 years and file for the credits. This is a tax credit, not dollars back to the company.

What Doesn’t Qualify?

1. Vans, minibuses, or busses that carry less than 20 passengers (not including the bus driver).
2. Operators who provide services to only one person, group, or organization.
3. Vans and similar vehicles used for vanpooling or taxi service don’t qualify

THE BUS MUST BE ENGAGED IN ONE OF THE FOLLOWING ACTIVITIES:

1. Scheduled transportation along regular routes
2. Nonscheduled operations if the seating capacity of the bus is 20 or more adults (driver not included)