IRS Issues Guidance to Claim Tax Credit for Alternative Fuel Sales

The IRS has issued Notice 2018-21 that establishes the procedures for claiming the $0.50 credit for alternative fuel sold or used in calendar year 2017.  The notice requires that a single one-time claim for all alternative fuels (including CNG and LNG) should be made no later than September 29, 2018.  Claims should be made using Form 8849 (Claim for Refund of Excise Taxes) accompanied by Schedule 3 (Certain Fuel Mixtures and the Alternative Fuel Credit).

The notice indicates that taxpayers who filed protective or anticipatory claims in 2017 must refile their claims; the IRS will not consider the previous claims perfected by the extension of the tax credits. Claims for 2017 may be submitted now but April 2 is the official start date for filing such claims and the date that will be used for determining whether the IRS owes interest on late payments to taxpayers.

To file a claim, a person must be a registered alternative fueler. If you previously submitted claims to the IRS or are a retail seller of fuel, then you are likely registered. First time claimants who are not registered must file Form 637 (Application for Registration) prior to making claims for credits. Persons intending to file the claim should seek advice from tax counsel or an accountant to ensure that claims are properly submitted.

Notice 2018-21 is available here, and IRS tax forms can be located here.

More information about the tax credit is available on the Tax Credit Overview page on the NGVAmerica website.