The tax credit provides $0.50 per gallon incentive for alternative fuel blenders.
Terms and Qualifications:
- An alternative fuel blender that is registered with the Internal Revenue Service (IRS) may be eligible for a tax incentive on the sale or use of the alternative fuel blend (mixture) for use as a fuel in the blender’s trade or business.
- The credit is in the amount of $0.50 per gallon of alternative fuel used to produce a mixture containing at least 0.1% gasoline, diesel, or kerosene.
- Qualified alternative fuels are liquefied hydrogen, P-Series fuel, liquid fuel derived from coal through the Fischer-Tropsch process, and liquid fuel derived from biomass.
- The incentive must first be taken as a credit against the blender’s alternative fuel tax liability; any excess over this fuel tax liability may be claimed as a direct payment from the IRS.
- The tax credit is not allowed if an incentive for the same alternative fuel is also determined under the rules for the ethanol or biodiesel tax credits.
IRS Form 4136: http://www.irs.ustreas.gov/pub/irs-pdf/f4136.pdf
US Internal Revenue Service (IRS); US Department of Energy (DOE)
Program Extended Through December 31, 2020