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Recent News: Alternative Fuel Excise “Propane Credit” Tax Reinstated
If you remember the “Propane Credit,” otherwise known as the Alternative Fuel Excise Tax Credit, you remember that it originally expired in December 31, 2017. In late December 2019, Congress reinstated the Alternative Fuel Excise Tax Credit retroactive to the beginning of 2018. This means taxpayers can claim a credit on their tax return for excise tax paid on alternative fuels used in the course of their business.
Taxpayers can now make a retroactive claim for refund without having to invest the time and expense of completing an amended 2018 tax return. Under this process, there is a form that the taxpayer must submit to claim the credit for both 2018 and 2019. There is a 180-day claim period, beginning February 14, 2020 and ending on August 11, 2020, during which Form 8849 must be filed with the IRS.
This form does not need to be submitted at the same time as the taxpayer’s 2019 tax return. If you have any questions about the reinstated Propane Credit, contact us and we’ll be happy to help!