If your fleet includes propane-powered forklifts or other propane autogas fueled vehicles, the new IRS directive may help cut your taxes.
IRS has released guidance on how to claim the federal alternative fuel tax credit, which was retroactively extended on Dec. 18, 2015, by Congress as part of the Protecting Americans from Tax Hikes (PATH) Act of 2015. The credit allows companies operating propane autogas vehicles and propane forklifts to claim 50 cents for every gallon of the alternative fuel they used in 2015.
IRS now defines forklifts as an “off-highway business motor vehicle,” making them eligible for the alternative motor fuel tax credit in addition to on-road vehicles. The end-user of the propane autogas fuel is the entity that should receive the tax credit.
“For fleet managers, propane autogas vehicles offer the lowest total cost of ownership and one way to maximize the financial benefit of propane autogas is by taking advantage of this alternative fuel tax credit from the federal government,” said Roy Willis, president and CEO of the Propane Education & Research Council.
The claim for 2015 must be filed by August 8, 2016. Guidance published by the IRS on how to file for the tax credit can be found here.
Other newly updated alternative fuel tax incentives are available from the US Department of Energy's Alternative Fuels Data Center.
The PATH Act has approved the tax credit for gallons consumed in 2016 but the IRS has not published its official guidance on how the credit may be claimed for the current year.
Source: ARA Rental Pulse