Opportunity in Numbers
40 Years and Counting

Propane Credit For Forklifts Is Reduced For 2016

What Has Changed In 2016?

President Obama signed into law the Protecting Americans from Tax Hikes Act (PATH) on December 18th, 2015. The law added a lot of certainty for taxpayers especially those in the Transportation and Logistics industry because it made permanent certain tax provisions that we continually had to wait for congress to extend in the past few years. Other popular provisions were modified or extended such as 50% Bonus Depreciation on new equipment purchases and Sec 179 expensing.

The alternative fuel credit – a credit against the excise tax imposed on the sale or use of alternative fuels such as propane – was extended for two years, retroactive to Jan 1, 2015. Many of our clients take advantage of this refundable credit for the use of propane in forklifts and other equipment. Form 637 has to be filed in order to register with the IRS and then the credits and refunds are claimed on annually filed income tax returns.

As part of the PATH Act, the alternative fuel tax credit will be reduced for 2016. Previously a credit of 50 cents per gallon of alternative fuel sold or used by the taxpayer could be claimed. Effective January 1, 2016, the PATH act has reduced credit rates to 29 cents per gallon for liquefied natural gas and 36 cents a gallon for propane.

Contact Greg Zink, our Transportation Team Leader, to find out how to utilize the alternative fuel credit and visit our Transportation and Logistics Industry page to learn about the services we offer.

 

Greg Zink
248.415.4421
gzink@www.mrpr.com

// JS for Counters

General Inquiries