Alternative Fuels

Alternative fuel tax credits extended through 2011

Posted on January 5, 2011

WASHINGTON, D.C. — The recently signed H.R. 4853, also known as the Middle Class Tax Relief Act of 2010, includes alternative fuel tax credits and incentives for 2011.

Blue Bird Corp. issued a press release on Wednesday informing the industry of the credits. Here are the details:

Alternative Fuel Infrastructure Tax Credit: A tax credit for installation of propane and compressed natural gas (CNG) fueling stations. The credit is up to 30 percent of the cost, not to exceed $30,000. Fueling station owners who install qualified equipment at multiple sites are allowed to use the credit toward each location. For more information, see IRS Form 8911 and/or Form 3800, which are available via the IRS website.

Alternative Fuel Excise Tax Credit: A 50-cent per gallon tax credit for propane and CNG when used as a vehicle fuel. This tax credit, which expired at the end of 2009, is retroactive for 2010. For an entity to be eligible to claim the credit, it 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 IRS. The incentive must first be taken as a credit against the entity's alternative fuel tax liability; any excess over this fuel tax liability may be claimed as a direct payment from the IRS. For more information, see IRS Publication 510 and IRS Forms 637, 720, 4136 and 8849.

Blue Bird said that the popularity of its alternative fuel school buses has increased significantly over the past five years. The manufacturer offers the Propane-Powered Vision, the Propane-Powered Micro Bird and the CNG-Powered All American.


Related Topics: alternative fuels, CNG, propane

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