The Infrastructure and fuel use credits are scheduled to expire 12/31/16. If you installed, or plan to install infrastructure in 2016, you can claim a 30% federal tax credit, up to $30,000, per location. If you own infrastructure, or fueled from infrastructure on your property in 2016, you may also be eligible for a federal excise tax credit. The 2016 CNG credit is $0.50/ gallon gasoline equivalent (GGE0, for propane it is $0.37/ GGE.
For the excise tax credit, you must have a federal registration number to claim the credit. If you have registered in the past year, please check your registration to ensure it has not expired.
It is uncertain if these credits will be extended for the 2017 tax year, or beyond. However, efforts are underway, by alternative fuel lobbyists to extend both for a 5-year term. I will keep you posted as to the outcome of their efforts.
For an entity to be eligible to claim the credit they must be liable for reporting and paying the federal excise tax on the sale or use of the fuel in a motor vehicle. Tax exempt entities such as state and local governments that dispense qualified fuel from an on-site fueling station for use in vehicles qualify for the incentive. Eligible entities must be registered with the Internal Revenue Service (IRS). Since schools do not have a federal excise tax liability, you will receive a direct payment from the IRS.
If you are claiming the infrastructure tax credit, no registration number is required.
If you will claim the excise tax credit, DOWNLOAD form 637. This form needs to be completed and submitted, immediately, for a registration number to be assigned by the IRS.
Click here Form 8849, which is the form you will file after 2016, to claim the credit. The registration number must be on the form.
Please note that we strongly suggest you mail form 637 registered mail. After an acceptable amount of time has passed for its deliver, call the IRS to confirm who was assigned the form for processing. They may want to schedule a site visit to inspect your infrastructure, prior to assigning a number. Either way, stay in contact with them until you receive your registration number.
For propane vehicles that pay state excise tax, this tax is not collected by your fuel provider. You are required to purchase a decal, annually, to pay the State of Indiana Excise tax.
This can be done when the bus is registered, or by completing form 46292-DOWNLOAD
The fee is indicated on the form, based on the vehicle class.
Please do not hesitate to call or email with any questions.