IRS Issues Guidance on Tax Credit for Fuel Used in Off-Road Equipment

OMA Connections Partner Schneider Downs reports that the IRS has provided guidance on requesting refunds for the Alternative Fuel Credit (more commonly known as Propane Tax Credit and Compressed Natural Gas Tax Credit) for tax years 2018 and 2019. This credit was retroactively reinstated by the federal spending bill enacted in late 2019.

The credit enables taxpayers who use propane or liquefied petroleum gas for off-highway business use in equipment like forklifts, or compressed natural gas in vehicles, to receive a 50-cent per-gallon credit. There is a limited time to claim this credit for 2018 and 2019. For questions, contact Schneider Downs. 1/22/2020