At the end of the 2019 calendar year, Congress passed the Taxpayer Certainty and Disaster Relief Act of 2019 (H.R.3301). One provision of the House Bill related to retroactively extending the income tax credit available for biodiesel and alternative fuels. The tax extender will provide welcome relief to companies that operate in various industries.
As part of the renewal, Congress retroactively reinstated many of the alternative fuel credits dating back to 2018. Additional guidance was provided in IRS Notice 2020-8 that illustrates how taxpayers can retroactively file for the credit going back to closed tax years.
The credit has a value of up to $1.00 per gallon for blenders of biodiesel and $0.50 per gallon for taxpayers that that sell or use alternative fuels (propane, butane, liquefied hydrogen).
The open period to claim credits for both the 2018 and 2019 tax years begins on February 14, 2020 and ends on August 11, 2020. Claims not paid by the IRS within 60 days of receipt will receive interest from the claim filing date beginning no earlier than February 14, 2020.
The process in order to file for the credits has changed and now requires new forms and schedules. If you are interested in this incentive or have questions about how to ensure a proper and timely filing, please reach out to Barnes Dennig here, or by calling 513-241-8313 to discuss any questions.