Many taxpayers in the transportation and manufacturing industries have been patiently waiting, like a child for Christmas, for an extension of the Alternative Fuel Credit. The credit expired on December 31, 2017, and it appears now the extension will become law this week when the Senate passes and President Trump signs the Tax Certainty and Disaster Relief Act of 2019 approved by the House on December 17. The credit enables taxpayers who use propane or liquefied petroleum gas for business equipment like forklifts, or compressed natural gas in vehicles, to receive a 50-cent per gallon credit.
When signed, the new law will reinstate the Alternative Fuel Credit retroactively to January 1, 2018. According to the directive, the IRS will provide guidance within 30 days of the effective date for a one-time submission of claims covering the period January 1, 2018 through September 30, 2019. The guidance permits a 180-day period for submission of these claims.
Schneider Downs will monitor this situation and provide an update when the IRS releases its guidance. Contact us in the interim with any questions you may have about the Alternative Fuel Credit or any other tax planning inquiries.
