Yes, credit or refund may be claimed for the unused portion of the tax paid for the Heavy Highway Vehicle Use Tax if the vehicle was taken out of service for specific, qualifying reasons.

A refund is not allowed simply because a vehicle is temporarily taken out of service for maintenance or an occasional light load. The claim must be based on one of the specific, significant events described below.

Qualifying Events for Credit or Refund

To recover the HVUT for the remaining months of the tax period, beginning July 1st and ending June 30th, a taxable vehicle must meet one of the following conditions after the tax was initially paid:

• Low Mileage Use: The vehicle was projected at the time of tax payment to exceed the mileage use limit, (5,000 miles, 7,500 miles for agricultural vehicles) for the tax period but did not in fact exceed the mileage use limit for the tax period.
• Sale or transfer: The vehicle was sold or transferred before the end of the tax period for HVUT
• Destruction or Theft: The vehicle was destroyed-meaning scrapped or completely written off and not economical to rebuild-or stolen before the end of the tax period.

In sales, destruction, or theft cases, the amount is credited or refunded on a prorated basis from the first day of the month after the occurrence of the event to the end of the tax period.

Filing Process and Records to Be Maintained

The owner-operator and fleet manager have to use the correct forms and keep accurate records that justify their claim.

Claiming the Refund/Credit

How you do it depends on whether you want cash back or a deduction on a future filing:

Option A: Claiming a Credit (The Offset)

• Form Used: Line 5 of Form 2290 (the next time you file for the current or next tax period).
• Process: The amount of the credit is automatically deducted from the tax liability due on your other taxable vehicles or the tax due for the following year. Generally, this is the quickest way to recover the money.

Option B: Filing for a Direct Refund - Cash Back

• Form Used: IRS Form 8849, Claim for Refund of Excise Taxes, plus Schedule 6 (Other Claims).
• Process: This form is filed separately. Once the IRS approves the form, a check for the prorated tax amount will be mailed directly to the taxpayer. This usually takes several weeks.

Essential Records Needed

The IRS requires specific supporting documentation to validate the claim and prevent rejection or delays:

Claim Reason	Required Records (Documentation)
Sale or Transfer	A copy of the Bill of Sale or transfer agreement, clearly showing the date of sale and the VIN.
Destruction or Theft	Police Report documenting the theft or accident, and/or Insurance Claim documentation showing the vehicle was officially declared a total loss.
Low Mileage Use	Detailed odometer readings or trip sheets proving the vehicle did not exceed the mileage use limit (5,000/7,500 miles) for the full tax period.

Note: For more information, visit IRS website