The Internal Revenue Service has released guidance on how to claim the federal Alternative Fuel Tax Credit, which was retroactively extended on Dec. 18, 2015, by Congress as part of the Protecting Americans from Tax Hikes (PATH) Act of 2015. The credit allows operators of propane autogas vehicles and propane forklifts to claim 50 cents for every gallon of the alternative fuel they used in 2015.
The PATH Act actually approved the tax credit for gallons consumed in 2016 as well, but the IRS has not published its official guidance on how the credit may be claimed for the current year.
The IRS has defined forklifts as an “off-highway business motor vehicle,” making them eligible for the alternative motor fuel tax credit in addition to on-road vehicles. The IRS indicated that the end-user of the propane autogas fuel is the entity that should receive the tax credit.
The claim for 2015 must be filed by Aug. 8, 2016, according to the IRS procedures.
While they need only to file a few documents with the government to receive the credit, all vehicle and forklift operators should consult their own tax advisors first regarding any claims for credits or refunds, recommends the Propane Education & Research Council.