In a welcome bit of good news, Congress has extended the 50-cent per gallon alternative motor fuel tax credit as part of the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act. Propane forklift operators have until Aug. 8, 2015, to make a one-time claim to receive the tax credit for every gallon of propane used in 2014. The claim provision was part of the Tax Increase Prevention Act of 2014, signed by President Obama on Dec. 19, 2014.
“One way for facilities and forklift operators to maximize the financial benefits of propane forklifts is by taking advantage of this alternative fuel incentive from the federal government,” says Jeremy Wishart, deputy director of business development for the Propane Education & Research Council (PERC).
“Propane is already the right fuel for companies wanting an American-made, sustainable solution, and this tax credit makes it an even more attractive option for forklift operators in any large warehouse, facility, or distribution center,” Wishart adds.
The Internal Revenue Service has defined forklifts as an off-highway business motor vehicle, making them eligible for the alternative motor fuel tax credit. The IRS indicated that the end-user of the forklift is the person who should receive the tax credit, not the propane marketer.
Forklift operators must take a few appropriate steps to register with the IRS before becoming eligible for the tax credit. First, forklift operators need to file Form 637 with the IRS to be registered as an “Alternative Fueler.” The IRS will then issue a registration number identifying the forklift operator as such. Once the registration number is received, the forklift operator can file a claim for the credit at the end of the year by filing Form 4136.
While they need only to file a few documents with the government to receive the credit, PERC urges all forklift operators to consult their own tax advisors first regarding any claims for credits or refunds.