The Proportional Use Credit Certification Application (Form PROP-1) is a mandatory state document issued by the Indiana Department of Revenue (DOR) Motor Carrier Services Division. It serves as the gateway for motor carriers to become certified to claim refunds on fuel taxes paid for fuel consumed by auxiliary equipment rather than for propelling the vehicle on the highway. This credit applies to specialized commercial vehicles—such as cement mixers, dump trucks, sanitation trucks, and mobile cranes—where a significant portion of fuel is used to operate power take-off (PTO) units or other non-propulsion systems. Filing this form allows carriers to officially register their eligible vehicles with the state and assigns them the necessary “Vehicle Code” and percentage credit rates required for future quarterly refund claims. Without an approved PROP-1 on file, any claim for proportional use fuel tax credits will be denied. The certification is a one-time requirement that remains valid for subsequent calendar years unless business details or fleet composition change significantly, but it must be submitted by the strict April 1 deadline of the first year you intend to claim the credit.
How To File The PROP-1 Application
Filing the PROP-1 involves a straightforward but precise process:
Step 1: Meet The Deadline – You must submit this application to the Indiana DOR no later than April 1 of the first calendar year for which you want to claim the credit. Late applications may result in the forfeiture of credits for that year.
Step 2: Pay The Fee – A non-refundable application fee of $7.00 is required. You can pay this via check if mailing, or by credit card (using Form MC-CCP) if faxing or emailing.
Step 3: Complete The Form – Fill out every section of the PROP-1 form accurately, including your business details, vehicle information, and owner data.
Step 4: Submit The Package – You have three options for submission:
- Email: Send the completed form and payment authorization to
[email protected]. - Fax: Fax the documents to 317-615-7333.
- Mail: Send the physical form and check to:
Indiana Department of Revenue
Motor Carrier Services / Fuel Tax Section
7811 Milhouse Road, Suite M
Indianapolis, IN 46241-9612
Step 5: Await Certification – Once processed, the DOR will certify your carrier status, allowing you to file quarterly claims for fuel tax credits using the vehicle codes established in this application.
How to Complete Indiana PROP-1 Form
Business Identification Section
Line 1: Legal Name – Enter the official legal name of your sole proprietorship, partnership, corporation, or other business entity as registered with the Secretary of State.
Line 2: Doing Business As (DBA) – If you operate under a trade name different from your legal name, enter it here. If not, leave this blank.
Lines 3, 5, 6, 7: Physical Address – Enter the actual physical location of your business, including street address, city, state/province, and ZIP Code. Do not use a P.O. Box here.
Lines 4, 8, 9, 10: Mailing Address – Complete this section only if your mailing address is different from your physical address. If they are the same, leave these lines blank.
Line 11: County – If your business is located in Indiana, enter the name of the county. Out-of-state businesses can leave this blank.
Line 12: Telephone Number – Enter the area code and phone number for your principal place of business where the DOR can contact you.
Line 13: Federal Identification Number (FEIN) – Enter your 9-digit Federal Employer Identification Number assigned by the IRS.
Line 14: Social Security Number – If your business is a sole proprietorship and does not have a FEIN, enter your Social Security Number here.
Line 15: DOT Number – Enter your U.S. Department of Transportation (USDOT) number.
Line 16: TID Number – If you are an Indiana-based carrier, enter your Taxpayer Identification Number (TID).
Line 17: Base State/Jurisdiction – Enter the state or jurisdiction where you have your International Fuel Tax Agreement (IFTA) license registered.
Line 18: Email Address – Provide a valid email address. The Motor Carrier Services division will use this for official correspondence.
Organization Information
Line 19: Type of Organization – Check the box that matches your business structure:
- Sole Proprietorship
- Partnership
- Corporation
- Government
- Other (specify)
Line 20: Business Details – You must provide:
- State of Incorporation: The state where your corporation was formed.
- State of Commercial Domicile: The state where your main business office is located.
- Accounting Period Year Ending Date: Enter the month and day your tax year ends (e.g., 12/31).
- Owner Information: In the space provided (or on an attached sheet), list the Name, Address, and Social Security Number for all owners, general partners, or corporate officers. This section is mandatory; incomplete forms will not be processed.
Vehicle Information Section
This section establishes which vehicles in your fleet are eligible for the credit. You must list every eligible vehicle. If you have more than five vehicles, attach a separate spreadsheet or printout containing all the required columns.
Vehicle Code – Enter the 2-digit code from the “List of Eligible Vehicles” (see below) that best describes the vehicle’s auxiliary equipment. This code determines the percentage of fuel eligible for the credit.
Vehicle VIN – Enter the full Vehicle Identification Number.
Year – Enter the model year of the vehicle.
Vehicle Type – Describe the vehicle (e.g., “Dump Truck,” “Mixer”).
Vehicle Make – Enter the manufacturer (e.g., Kenworth, Mack, Ford).
Gross Weight – Enter the Gross Vehicle Weight Rating (GVWR) of the vehicle.
Signature Section
Line 21: Certification – The application MUST be signed by an owner, general partner, or corporate officer.
- Signature & Date: Sign and date the form.
- Printed Name & Title: Print the signer’s name and official job title.
- Telephone Number: Provide a direct contact number for the signer.
By signing, you certify under penalty of perjury that the information is true and correct.
List Of Eligible Vehicles And Credit Percentages
Use these codes to complete the “Vehicle Code” column. The percentage represents the portion of fuel assumed to be used for non-highway purposes.
- 10 – Air Conditioning Unit for Buses (10%)
- 11 – Bookmobile (35%)
- 12 – Boom Truck-Block Boom (20%)
- 13 – Bulk Feed Truck (15%)
- 14 – Car Carrier with Hydraulic Winch (10%)
- 15 – Carpet Cleaning Van (15%)
- 16 – Cement Mixer (30%)
- 17 – Distribution Truck-Hot Asphalt (10%)
- 18 – Dump Trailer (15%)
- 19 – Dump Truck (23%)
- 20 – Fire Truck (48%)
- 21 – Leaf Truck (20%)
- 22 – Lime Spreader (15%)
- 23 – Line Truck-Digger/Derrick, Aerial Lift Truck (20%)
- 24 – Milk Tank Truck (30%)
- 25 – Mobile Crane (42%)
- 26 – Pneumatic Tank Truck (15%)
- 27 – Refrigeration Truck (15%)
- 28 – Salt Spreader-Dump with Spreader (15%)
- 29 – Sanitation Dump Trailers (15%)
- 30 – Sanitation Truck (41%)
- 31 – Seeder Truck (15%)
- 32 – Semi Wrecker (35%)
- 33 – Service Truck with Jackhammer/Pneumatic Drill (15%)
- 34 – Sewer Cleaning Truck (Sewer Jet/Vactor) (35%)
- 35 – Snow Plow (10%)
- 36 – Spray Truck (15%)
- 37 – Super Sucker (90%)
- 38 – Sweeper Truck (20%)
- 39 – Tank Truck (24%)
- 40 – Tank Transport (15%)
- 41 – Truck with Power Take-off Hydraulic Winch (20%)
- 42 – Wrecker (10%)
- 71 – Auxiliary Power Unit (APU) (4%)
- 72 – Stone Slinger (35%)
- 73 – Diesel Particulate Filter (1%)
Important Tips For Success
- Double-Check Your Codes: Using the wrong Vehicle Code will result in incorrect credit calculations and potential audits.
- Sign The Form: Unsigned forms are immediately rejected.
- Pay The Fee: The application will not be processed without the $7.00 fee.
- Keep Copies: Retain a copy of your approved PROP-1 certification. You will need to reference these vehicle codes and percentages every time you file a quarterly refund claim or add/delete vehicles from your fleet.