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ATTENTION! IMPORTANT TAX INFORMATION Alternative Fuel Tax Credit for Propane-Powered Forklifts Congress recently enacted legislation providing for a 50¢ per gallon tax credit for companies using propane in forklifts and airport tugs. Although forklifts are normally exempt at the time of purchase from the federal excise tax on propane, they are still eligible to claim the full 50¢ per gallon credit for business use. This credit could be of significant benefit to a warehouse or manufacturing operation using propane-powered forklifts. As an example, a warehouse operating four forklifts running approximately five hours per day, would consume approximately 2,000 gallons of propane annually. At a 50¢ per gallon tax credit, this would amount to a $1,000 credit for the tax payer, which is claimed on the taxpayer’s income tax return for that year. To obtain the credit, the forklift user must first register with the IRS. This is accomplished by filing Form 637 with the IRS to register as an “Alternative Fueler.” Click on the link below to download a blank Form 637 and/or an example of a completed form. We would be happy to assist you in the completion of this form or we can prepare the form for you. The IRS indicates that it may perform an onsite inspection of the taxpayers who file the Form 637 to assure they qualify for the credit. Once the registration is approved by the IRS, the business can file the claim for the credit with its annual federal income tax return. Please do not hesitate to contact us if you have any comments or questions. |
