The IRS recently released Notice 2018-21 that provides, among other things, guidance to taxpayers regarding the Biodiesel Mixture Credit, the Alternative Fuel Credit and the Alternative Fuel Mixture Credit, all of which expired at the end of 2016. The Bipartisan Budget Act, passed February 8, retroactively reinstates those credits from January 1 through December 31, 2017.
The notice specifies that taxpayers must use the one-time claim process for the Biodiesel Mixture Credit or the Alternative Fuel Credit by filing Form 8849 (Claim for Refund of Excise Taxes) and include Schedule 3 (Certain Fuel Mixtures and the Alternative Fuel Credit). Importantly, all claims must be made on a single Form 8849.
Similarly, taxpayers claiming the Alternative Fuel Mixture Credit for 2017 should complete a Form 720X (Amended Quarterly Federal Excise Tax Return). Outside of these instances, all filers should continue to use the traditional forms (e.g., the Form 4136, et al) associated with other tax credits.
The claim period for all credits begins on April 2, 2018, with claims for the Biodiesel Mixture Credit and Alternative Fuel Credit required by September 29. Claims for the Alternative Fuel Mixture Credit must generally be made from the later of (a) three years from the time the return was filed, or (b) two years from the time the tax was paid.