Propane Tax Credit Extended Through 2011

Transportation & Logistics

By Jason Droske

Warehousing and business operations with propane-powered motor vehicle equipment (forklifts and tow-motors) were afforded a popular 50-cents-per-gallon tax credit from the enactment of the Safe, Accountable, Flexible and Efficient Transportation Equity Act: A Legacy for Users, which became effective on October 1, 2006. Subsequent amendments to these provisions were made by the Tax Technical Corrections Act of 2007 and the Emergency Economic Stabilization Act of 2008. These benefits expired on December 31, 2009.

On December 17, 2010, President Obama signed the Tax Relief, Unemployment Insurance Authorization and Job Creation Act of 2010, extending the propane tax credit through December 31, 2011. It is important to note that the credit was made retroactive beginning January 1, 2010, allowing continuous availability of the credit to taxpayers.

To claim the credit, taxpayers must register with the IRS by filing Form 637, Application for Registration (For Certain Excise Tax Activities). (Taxpayers who have previously claimed this credit should continue to use the registration number they were originally issued.) Form 637 only needs to be completed once to obtain the initial registration number. Once registered, taxpayers can claim the credit on Form 4136, Credit for Federal Tax Paid on Fuels.

Please contact Jason Droske at (412) 697-5418 or jdroske@schneiderdowns.com or any Schneider Downs Tax Advisor if you need assistance registering or claiming the Alternative Fuels Tax Credit. 

Interested in receiving more timely articles like this one with topics that are relevant to your businessClick here to sign up for our weekly newsletters.  Or, if you'd like more information on Schneider Downs Transportation and Logistics Industry Group, visit our webpage.



Schneider Downs provides accountingtax, wealth management, technology and business advisory services through innovative thought leaders who deliver the expertise to meet the individual needs of each client. Our offices are located in Pittsburgh, PA and Columbus, OH. 

This advice is not intended or written to be used for, and it cannot be used for, the purpose of avoiding any federal tax penalties that may be imposed, or for promoting, marketing or recommending to another person, any tax-related matter.

You’ve heard our thoughts… We’d like to hear yours

The Schneider Downs Our Thoughts On blog exists to create a dialogue on issues that are important to organizations and individuals. While we enjoy sharing our ideas and insights, we’re especially interested in what you may have to say. If you have a question or a comment about this article – or any article from the Our Thoughts On blog – we hope you’ll share it with us. After all, a dialogue is an exchange of ideas, and we’d like to hear from you. Email us at contactSD@schneiderdowns.com.

Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax, or legal advice. Please note that individual situations can vary. Therefore, this information should be relied upon when coordinated with individual professional advice.

© 2019 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.