IRS Publication 510
Definition of 'IRS Publication 510 '
A document published by the Internal Revenue Service that details how businesses are to report and pay excise taxes for certain types of products. IRS Publication 510 covers excise taxes levied on fuels, manufactured goods, heavy vehicles, ship passengers, foreign insurance and products that are harmful to the environment, such as certain chemicals and oil-based products.
Investopedia explains 'IRS Publication 510 '
The IRS allows businesses to request credits and exemptions for certain excise taxes, such as the sale of biofuels and alternative fuels. These credits can change from year to year, and are often the focus of governmental legislation.
While businesses might be able to offset their taxes for the sale of fuel with credits, consumers are not able to. Excise taxes typically make up 10-30% of the price of gas at the pump.