IRS Releases Guidance for Claiming Forklift Fuel Credit
The Internal Revenue Service (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 operators of propane-fueled forklifts and autogas vehicles to claim 50 cents per gallon for every gallon of the alternative fuel they used in 2015. In addition, the PATH Act also approved the tax credit for gallons consumed in 2016.
The IRS defines forklifts as “an off-highway business motor vehicle,” making them eligible for the alternative fuel tax credit. The agency indicated that the end-user of the propane fuel is the entity that should receive the credit. The claim for 2015 must be filed by Aug. 8, 2016, according to IRS procedures.
The Propane Education & Research Council notes that while those claiming the credit need to file only a few documents, all vehicle and forklift operators should consult their own tax advisors regarding any claims for credits or refunds.
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