How to Increase the Bottom Line with Fuel Tax Credits and Refunds

Federal Credits

ALTERNATIVE FUEL CREDIT

IRS NOTICE

MUST FILE AN APPLICATION FOR 637 AL NUMBER

What is a Motor Vehicle? Motor Vehicle- the term “ Motor vehicle” includes all types of vehicles propelled by motor that are designed for carrying or towing loads from one place to another, regardless of the type of load or material carried or towed and whether or not the vehicle is registered or required to be registered for highway use. Included are fork lift trucks used to carry loads at railroad stations, industrial plants, warehouses, etc. The term does not include farm tractors, trench diggers, power shovels, bulldozers, road graders or rollers and similar equipment which does not carry or tow a load.

Motor Vehicle

How to you file for credit? 720 –Only for the amount of tax liability 4136 – Income Tax Form Line 15

4136

Propane Education and Research Council Tax Credit Available for Propane Forklift Operators In 2005, Congress enacted the Safe, Accountable, Flexible, and Efficient Transportation Equity Act of 2005, also known as the Highway Bill (P.L ). The ultimate goal of the legislation is to encourage the use of alternative fuels, and these provisions went into effect on October 1, The Internal Revenue Service (IRS) has clarified that forklifts fit the definition of an off-highway business motor vehicle, and fuel used in a forklift is eligible for the 50 cent per gallon credit. Also, the IRS stated that only forklift operators are entitled to apply for the credit, and not propane marketers. Forklift operators should be aware that the fuel they use for forklift operations will be eligible for a 50 cent per gallon credit if they properly register with the IRS. For more information on the forklift tax credit or call Mike Troop at the National Propane Gas Association at PROPANE EDUCATION & RESEARCH COUNCIL

State of Virginia

Refund on Excise Tax

Types of Refunds Agricultural /Horticultural- Attach a list of the unlicensed vehicles/equipment in which the fuel was used. Fuel used in licensed vehicles and licensed equipment is not eligible for refund. Vehicles with F plates (Farm Tags) do not qualify for a refund. The fuel must have been used exclusively for agricultural or horticultural purposes.

100 % of State Excise Taxes Paid. However if you use on road fuel, you must have paid federal Taxes. No refund is given for Federal Taxes. If possible use OFF-Road Diesel. No State or Federal Taxes Example of Agricultural/Horticultural Equipment Terragarator Hagie Sprayer Rogator Tractor Spray Coupe

Agricultural Vehicles Send a listing of your spray, Fertilizer, Lime or Seed Customers

Non-Highway Equipment Loaders, forklifts, yard trucks, lawn movers, power equipment.

Others

How to file for Refund. Form TS216 Send List of Off-Road Vehicles Send Customer list for Spreading or Spraying Send worksheet with each truck number and number of gallons purchased Keep copy of all tickets for backup.

Maryland

21 Claims for special uses: Claims for refunds pertaining to solid waste compacting, redi- mix, petroleum delivery motor vehicles, well – drilling motor vehicles, and certain farm equipment and vehicles must be on refund forms provided or approved by the Comptroller. They cannot be deducted as a credit on any tax return or IFTA report. [ Md. Regs. Code § (A).] Claims are considered only for qualified vehicles using Maryland tax–paid fuel. [ Md. Regs. Code § (F).] Md. Regs. Code § (A) Md. Regs. Code § (F)

Refund Items

B. Claims shall include: (1) Original invoices as prescribed by Regulation.02, and in instances where the fuel is purchased from retail service stations, the invoices shall also include: (a) Vehicle license tag number, and (b) Vehicle unit number; (2) A statement of fuel used, which indicates the following for each vehicle involved in the claim: (a) Vehicle license tag number or unit number, and (b) Total gallons of fuel used. C. Claims for refund of taxes paid on fuel used from a claimant's bulk storage facility shall: (1) Include original invoices for all bulk purchases; (2) Be submitted only after all fuel represented by that invoice, or invoices, is actually used and accounted for; and (3) Include a statement of fuel used, which indicates for each vehicle, the information in § B(2) of this regulation, and if any fuel is used from the same bulk storage, for vehicles for which the tax is nonrefundable, indicate those gallons used.

D. If vehicles are fueled from claimant's bulk storage, detailed records required by Regulation.07 shall be maintained for audit purposes. These records shall support all information submitted on the statement of fuel used as specified in §§ B(2) and C(3) of this regulation and be in the form of fueling tickets, fueling logs, or other accounting records acceptable to the Comptroller, prepared at the time of vehicle fueling. E. Claimants licensed under Tax-General Article, Title 9, Subtitle 3, maintaining bulk storage from which vehicles are fueled, shall report and pay the tax required before filing a claim for refund.