Alternative Fuel Tax Credit Retroactively Extended

The Propane Education & Research Council (PERC) is reminding propane autogas fleet operators to take advantage of the Alternative Fuel Tax Credit that was recently passed by the U.S. Congress as part of the Further Consolidated Appropriations Act, 2020.

Propane autogas fleet operators who apply for the tax credit are able to claim a credit for every gasoline gallon equivalent of propane purchased, or about 37 cents per gallon. Besides extending the credits through Dec. 31, 2020, fleet owners can also apply for credits retroactively for any fuel purchases made in 2018 and 2019. Due to this year’s unusual circumstances, there is a longer period to file for these credits. The deadline for filing is now July 15.

“The extension of the Alternative Fuel Tax Credit is a win for fleet managers, allowing them to further take advantage of the financial benefits of propane autogas in addition to the environmental benefits it provides fleets,” said Steve Whaley, director of autogas business development at PERC. “Even without the Alternative Fuel Tax Credit, propane autogas already offers the lowest total cost-of-ownership of any vehicle fuel, so the tax credit is icing on the cake for propane autogas fleet managers.”

The new law also retroactively extends the Alternative Fuel Vehicle Refueling Property Credit. This credit allows fleet operators to claim up to 30%, or $30,000, of the cost of installing qualified alternative fuel vehicle refueling property, including propane autogas refueling equipment.

Qualifying fleets can learn more about how to apply for these credits through a fact sheet offered by the National Propane Gas Association. PERC encourages all vehicle operators to consult their own tax advisers first regarding any claims for credits or refunds.

For more information about propane autogas vehicles, visit Propane.com.

SOURCE: The Weekly Propane Newsletter, April 16, 2020. Subscribe to receive all the latest posted and spot prices from major terminals and refineries around the U.S. delivered to your inbox each week. Receive a center spread of posted prices with hundreds of postings updated each week, along with market analysis, insightful commentary and much more.