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Federal Alternative Fuels Credit Extended Through December 2013

DALLAS, Jan. 18, 2013 /PRNewswire/ -- The American Taxpayer Relief Act of 2012 ("Act"), which was signed by the President in early January, retroactively renews and extends the Federal Alternative Fuels Excise Tax Credit ("Alternative Fuels Credit"), as specified under Internal Revenue Code Section 6426(d).  The Alternative Fuels Credit, which previously expired December 31, 2011, has been extended through December 31, 2013.


The Alternative Fuels Credit applies to alternative fuels used by a taxpayer in, or sold by a taxpayer for use in, aviation, a motor vehicle, or a motorboat. The amount of the credit permitted is $0.50 per gallon of liquid alternative fuel and, in the case of non-liquid alternative fuel, $0.50 per gasoline gallon equivalent.

The term "alternative fuel" includes:

  • Liquefied petroleum gas, commonly known as propane
  • P Series fuels
  • Compressed or liquefied natural gas
  • Liquefied hydrogen
  • Any liquid fuel derived from coal through the Fischer-Tropsch process according to certain carbon capture requirements
  • Compressed or liquefied gas derived from biomass
  • Liquid fuel derived from biomass

The Department of Treasury has not yet issued any special rules or subsequent guidance for submitting claims for the Alternative Fuels Credit.

The Fuels and Excise Tax practice at Ryan specializes in detailed review techniques that minimize client site disruptions, while properly identifying available alternative fuels credits and other motor fuels tax credits. Ryan's process provides the detailed documentation and licensing requirements, including responses to information document requests from the Internal Revenue Service, required to achieve sustainable alternative fuels credits. In addition, Ryan provides tailored recommendations to maximize future credits, as well as audit defense for alternative fuels credit claims.

About Ryan
Ryan is an award-winning global tax services firm, with the largest indirect tax practice in North America and the sixth largest corporate tax practice in the United States. Headquartered in Dallas, Texas, the Firm provides a comprehensive range of state, local, federal, and international tax advisory and consulting services on a multi-jurisdictional basis, including audit defense, tax recovery, credits and incentives, tax process improvement and automation, tax appeals, tax compliance, and strategic planning. Ryan is a two-time recipient of the International Service Excellence Award from the Customer Service Institute of America (CSIA) for its commitment to world-class client service. Empowered by the dynamic myRyan work environment, which is widely recognized as the most innovative in the tax services industry, Ryan's multi-disciplinary team of more than 1,600 professionals and associates serves over 6,500 clients in 40 countries, including many of the world's most prominent Global 5000 companies. More information about Ryan can be found at  


Robert D. Jones

David E. Pustejovsky


About PR Newswire
Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

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