If you use propane to power forklifts in your operations, or other alternative fuels in your fleet, there may be an opportunity to file a Federal excise tax claim for a credit or refund related to the fuel used during 2017.
The opportunity to file a claim for a credit or refund related to alternative fuel usage had been available for a number of years but the incentive program expired on December 31, 2016. During February 2018, as part of the recently approved Federal budget legislation, the incentives for alternative fuel usage were reinstated retroactively through December 31, 2017. This excise tax credit is potentially worth $0.50 per “gasoline gallon equivalent.”
Organizations may not have gathered the information needed to file claims for 2017 because the incentive expired at the end of 2016. Since the 2017 incentive was reinstated retroactively, the deadline for filing a one-time annual claim for 2017 will likely be extended to mid-August 2018 to provide enough time to go back and gather the information needed. If an organization has never filed a claim in the past, they must first register with the IRS as an “alternative fueler.”
If you are unfamiliar with the process to register and file a claim for alternative fuel usage, including propane used in forklifts, please feel free to contact Conor Proud at Sokolis Group, firstname.lastname@example.org or 267-482-6159. We are the nation’s leading independent fuel management consulting team and can help you avoid overpaying taxes on fuel.