IRS Issues Guidance on How to Claim Reinstated Fuel Tax Credits

The Internal Revenue Service (IRS) has issued guidance claimants must follow to make a one-time claim for payment of the credits and payments allowable under §§ 6426(c), 6426(d), and 6427(e) of the Internal Revenue Code (Code) for biodiesel (including renewable diesel) mixtures and alternative fuels sold or used during calendar years 2018 and 2019.

Congress recently reinstated the $1-per-gallon biodiesel tax credit retroactively through 2022, and the $0.50-per-gallon alternative fuels tax credit through 2020, as part of a year-end tax and spending deal. The deal also provides a credit for purchases made during the 2018 and 2019 tax years.

There is a 180-day claim period for 2018 – 2019 biodiesel and alternative fuel incentives, which begins on Feb. 14, 2020. Claims must be filed on or before Aug. 11, 2020. The IRS is directing companies to submit both 2018 and 2019 claims on a single Form 8849 along with a completed Schedule 3: Certain Fuel Mixtures and the Alternative Fuel Credit.

IWLA recommends members consult with a qualified tax professional for assistance in filing claims. Questions may also be directed to the IRS at (202) 317-4718.

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