The Alternative Fuel Vehicle Refueling Property Tax Credit expired on December 31, 2011, but was retroactively extended in fiscal cliff legislation signed by President Obama in January 2013. Retailers that put equipment into place to offer E85 in 2012 are likely eligible for the credit. The credit is now set to expire on December 31, 2013.
Details of Credit:
Fueling stations are eligible to claim a 30% federal income tax credit for the cost of establishing alternative fueling infrastructure when E85 is part of their offering. Other fuels eligible included natural gas, compressed natural gas, liquefied natural gas, liquefied petroleum gas, hydrogen, or biodiesel blends of at least B20.
The maximum tax credit is $30,000 for the cost of installing alternative fuel vehicle refueling property to be used in a trade or business of the taxpayer or installed at the principal residence of the taxpayer.
To claim the infrastructure tax credit, individuals were encouraged to consult Internal Revenue Service (IRS) Form 8911, which may be found under the incentives tab under tax forms.
It is important to note that the AFV Refueling Property Credit was not a “refundable” credit. In other words, the IRS will not issue a check if the credit is greater than the amount the taxpayer owes. However, it was a transferable credit, so station owners could still receive the benefits of the credit by working with another business or individual that could take advantage of the credit. As always, we recommend consulting your accountant before making any decisions.