Tax refund for power takeoff equipment
ON, Canada
Refund for Ontario gasoline tax paid for auxiliary equipment
grant_single_labels|summary
grant_single|eligibleFinancing
- grant_single|noCondition
grant_single|deadlines
- grant_single|openingDateNovember 14, 2019
grant_single|financingType
Other Support
grant_single|eligibleIndustries
- Construction
- Manufacturing
- Transportation and warehousing
grant_single|grantors
- Ontario Ministry of Finance
- Government of Ontario
grant_single|status
grant_card_status|open
grant_single_labels|preview
Get a refund on tax paid for fuel to operate auxiliary equipment such as cement mixers, aerial buckets, lifts and cranes or refrigeration units, power vacuums, pumps and blowers.
grant_single_labels|projects
This program applies to the province of Ontario, Canada, as specified by the Ministry of Finance for gasoline tax refunds related to Power Take Off operations. Companies eligible for this refund must conduct their auxiliary equipment operations within Ontario.
- Companies operating exclusively within the province of Ontario.
grant_single|admissibleProjectsExample
$18,000
Tax refund on fuel for power vacuums in urban cleaning services
$15,000
Reimbursement for fuel tax on pump operations for flood control
$13,000
Fuel tax return for aerial bucket trucks used in tree care services
$7,500
Refund on fuel tax for refrigeration units in delivery trucks across Toronto
$12,000
Fuel tax refund for cement mixers in construction projects
$9,000
Refund on fuel tax for crane operations in equipment rental services
grant_single_labels|admissibility
Eligibility for the Ontario Gasoline Tax Refund Program for Power Take Off operations is determined by specific operational and licensing conditions.
- The motor vehicle must be licensed under the Highway Traffic Act.
- The use of the auxiliary equipment must occur in Ontario.
- The auxiliary equipment must be powered using the same fuel tank that is used to power the motor vehicle.
- The power from the auxiliary equipment must not be used to propel the motor vehicle.
- The motor vehicle must not be principally used to transport passengers.
- The auxiliary equipment must not be used for personal use, pleasure or recreation.
- Tax must have been paid to Ontario for the fuel used during the PTO operation.
grant_eligibility_criteria|who_can_apply
Eligible applicants for the Ontario Gasoline Tax Refund Program for Power Take Off (PTO) operations include businesses and operators in Ontario using clear diesel fuel, gasoline, or propane in licensed motor vehicles for auxiliary equipment operations. These include industries involved in construction, farming, manufacturing, and interjurisdictional transportation that meet the specific fuel usage and vehicle operation criteria outlined by the Ministry of Finance.
grant_eligibility_criteria|who_cannot_apply
- Companies using auxiliary equipment for personal use, pleasure, or recreation
- Companies using auxiliary equipment to transport passengers
grant_eligibility_criteria|eligible_expenses
This grant provides refunds on gasoline tax for auxiliary equipment powered using a vehicle's main fuel tank. Eligible activities involve the operation of various types of auxiliary equipment in Ontario using clear fuel, gasoline, or propane.
- Operation of cement mixers.
- Use of aerial buckets, lifts, and cranes.
- Operation of refrigeration units.
- Powering vacuum, pumps, and blowers.
- Activities undertaken by paper shredders.
- Jobs conducted using ready mix trucks.
- Functional tasks by vacuum/hydro vac trucks over 300 - 599 horsepower.
- Execution of tasks using cranes rated over 11 tons capacity.
- Utilization of hydracrete pumps and heavy tow trucks.
- Engagements involving hydraulic excavators with a license plate (Gradall).
- Operational movements within carpet/duct cleaning and mobile washing.
- Use of fire vehicles for official duties.
- Engagement with garbage packers (Front/Rear or Side Loaders).
- Employment of blower operations.
- Loading and dumping procedures with licensed vehicles.
- Use in lugger unit operations.
- Implementation in mobile feed mills.
- Pumping operations.
- Temperature regulation with reefer/temperature controlled units.
- Activities with roll off unit vehicles.
- Salting/sanding processes using licensed equipment.
- Application via stone slingers.
- Utility vehicle tasks like aerial buckets, cranes, digger derricks, and tow trucks up to 11 tons capacity.
- Waste disposal/recycling activities.
- Drilling operations on well sites.
- Usage in winch cable truck duties.
- Auto transport services involving licensed units.
- Foam spraying processes.
- Line painting work assignments.
- Loading via log loaders.
- Street sweeping engagements.
- Delivery or transport processes using water trucks.
grant_eligibility_criteria|zone
The grant covers expenses related to fuel tax refunds for the operation of auxiliary equipment using a power take off (PTO) from a licensed motor vehicle.
- Fuel purchased for and used in PTO operations in Ontario.
- Accurate and verifiable records and purchase invoices demonstrating payment of tax on fuel used in PTO operations.
grant_single_labels|criteria
- The motor vehicle must be licensed under the Highway Traffic Act.
- The auxiliary equipment must be used in Ontario.
- The auxiliary equipment must be powered using the same fuel tank as the motor vehicle.
- The power from the auxiliary equipment should not be used to propel the motor vehicle.
- The motor vehicle should not be primarily used to transport passengers.
- The auxiliary equipment should not be used for personal use, pleasure, or recreation.
- Tax must have been paid to Ontario for the fuel used during the PTO operation.
grant_single_labels|register
Here are the steps to submit an application for a gasoline tax refund for power take off (PTO) operations:
- Step 1: Gather Required Documentation
- Compile records of fuel purchases with detailed invoices showing seller’s information, selling price per litre, tax charged, product quantity, and purchase date.
- Prepare a monthly summary of all fuel issues for the entire claim period, broken down by each licensed vehicle.
- Ensure all records and receipts are accurate and verifiable, as they must be kept for seven years for audit purposes.
- Step 2: Download and Complete the Application Form
- Download the appropriate application form for the claim period related to PTO activity on or after July 1, 2017.
- Refer to the guide provided by the Ministry of Finance for instructions on completing the form.
- Step 3: Choose Submission Method
- Decide whether to receive refunds via direct bank deposit by downloading and completing the Direct Deposit Request / Authorization form.
- Step 4: Submit Application
- Mail the completed application form along with any required supporting documents to the Ministry of Finance at the address provided:
- Ministry of Finance, Motor Fuels and Tobacco Tax, 33 King Street West, PO Box 625, Oshawa ON L1H 8E9.
- Keep a copy of the application and all submitted documents for your records.
- Step 5: Additional Requirements for Refunds Under $500
- If claiming refunds under $500 in a calendar year, supporting records do not need to be sent with the application. However, all relevant information should still be retained for seven years.
grant_single_labels|otherInfo
Here are additional relevant details for this grant:
- You must file for a refund within four years from the date the tax was paid.
- Refunds below $500 do not require supporting records but must be retained for seven years for potential audits.
- To expedite refunds, you can opt for direct deposit.
- All documentation relating to the refund must be kept for seven years in case of an audit.
- Applicants may need to provide proof of vehicle registration, equipment ownership, or lease arrangements, and PTO activity.
Apply to this program
Ontario Gasoline Tax Refund Program for PTO Operations
The Ontario Gasoline Tax Refund Program offers refunds on taxes paid for gasoline used in Power Take Off (PTO) operations, benefiting businesses utilizing auxiliary equipment powered by the same fuel tank as a licensed motor vehicle. This refund ensures that operational costs for businesses such as those involved in construction, logistics, waste management, and refrigeration are significantly reduced, allowing for more competitive pricing and profit margins.
Comprehensive Details on the Ontario Gasoline Tax Refund Program
The Ontario Gasoline Tax Refund Program is critically aligned with supporting industries that rely heavily on vehicle-mounted auxiliary equipment. Industries such as construction, agricultural services, waste management, and refrigerated transport operations regularly utilize machinery that draws power from a vehicle's primary fuel source rather than separate power supplies. With the tax burdens on fuel, this program significantly alleviates the costs imposed on such operations by providing a refund on the fuel taxes paid for PTO activities.
Eligibility for these refunds is well-defined, focusing on commercial vehicles licensed under the Highway Traffic Act that employ PTO auxiliary equipment in Ontario. This means that qualifying vehicles include those equipped with technically advanced and fuel-consuming attachments allowed under Ontario's tax regulations and guidelines. The principle behind this initiative is both economic and environmental, targeting businesses that engage in vital logistics and infrastructural activities without transferring the financial weight to end consumers, thereby stimulating market competitiveness and economic activity.
Upon qualifying, businesses can claim refunds based on pre-determined allowance percentages that correspond to their equipment's activity type. For example, percentages ranging from 30% for paper shredders and ready-mix trucks to 5% for line painters and street sweepers illustrate the program's scope. This tiered refund scheme ensures that the proportion of operational fuel used by the auxiliary equipment is adequately compensated, reflecting the operational role and economic contribution of each vehicle type.
Additionally, the program accommodates interjurisdictional carriers operating under the International Fuel Tax Agreement (IFTA), allowing them to claim refunds proportional to their Ontario travel. This aspect is crucial as it acknowledges the broad operational territories and logistical challenges faced by transporters crossing provincial boundaries, thus ensuring they are not financially penalized for the portion of their operations conducted outside Ontario. The calculated refunds under IFTA align with the kilometers driven in Ontario, ensuring a fair division of tax benefits according to actual on-territory operations.
The application process for the refund involves compiling a comprehensive document package that includes detailed accounts of fuel purchases, usage, and equipment operation. Businesses must provide verifiable records displaying the name of the fuel vendor, purchase details including invoice numbers, and proof of tax paid. Furthermore, maintaining organized and detailed records is essential, as they are required to be kept for up to seven years in anticipation of potential audits.
Through the implementation of these structured protocols, the Ontario Gasoline Tax Refund Program not only facilitates financial relief for businesses but also promotes operational efficiency, innovation in vehicular technology, and stricter adherence to regulatory requirements. These tax incentives are crucial in maintaining the economic balance, allowing businesses to reinvest savings into expanding operations, improving service delivery, and supporting Ontario's economic ecosystem effectively.
Ultimately, this tax refund program stands as a significant component of Ontario's broader economic strategy, driving productivity while ensuring that the state's fuel taxation policies do not hinder industrial growth and competitiveness. By participating in the program, businesses can enhance their operational capabilities, contribute to a more robust infrastructure, and uphold sustainability principles, reflecting Ontario's commitment to nurturing an innovative and resilient economy.
