Tax Credit For Propane Powered Vehicles

Posted by Davinder S

Do you operate propane powered vehicles to run your business?

If you own or operate propane powered forklifts, lawn mowers or any other propane powered motor vehicle, you may be eligible to receive the Alternative Fuel Excise Tax Credit in the amount of $0.37 per gallon of propane. According to the U.S. Department of Energy and the IRS, the Alternative Fuel Excise Tax Credit program has been extended through December 2016.

Who is eligible?

For an entity to be eligible for the credit, they must be liable for reporting and paying the federal excise tax on the sale or use of alternative fuel in a motor vehicle.

Are government entities eligible?

Yes. Tax exempt entities such as state and local governments that dispense qualified fuel from an on-site fueling station for use in vehicles qualify for the incentive.


How do I claim the credit?

The incentive must first be taken as a credit against the entity’s alternative fuel tax liability; any excess over this fuel tax liability may be claimed as a direct payment from the IRS.

For more information about claiming this credit, visit www.IRS.gov; IRS Publication 510, IRS Forms 637, 720, 4136, and 8849, and IRS Notice 2015-56 (August 2015), which are available on the Forms & Publications section of the IRS website.


Choose AmeriGas

AmeriGas is the nation’s largest propane company, serving over 2 million residential, commercial, industrial, agricultural and motor fuel propane customers from over 2,500 distribution locations in all 50 states. Visit AmeriGas for business for more information.

To learn if you qualify for the Alternative Fuel Excise Tax Credit, visit www.IRS.gov.

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