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 firstname.lastname@example.org or any Schneider Downs Tax Advisor if you need assistance registering or claiming the Alternative Fuels Tax Credit.
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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.