Congress Passes Tax Credits for Alternative Fuels!

Late Thursday evening in Washington, D.C. Congress passed the 2011 tax package, which includes incentives for the purchase of alternative fuels. According to the Associated Press, the package consists of “A series of incentives for selling, using and producing alternative fuels, including ethanol. Many of the provisions expired at the end of 2009. They would be extended through 2011. Cost: $11.3 billion” (Associated Press). In addition, the tax extension includes tax credits provided to property owners, both residential (up to $1,000) and commercial (up to $30,000), for installing electric vehicle charging systems in their home or workplace. In a press release the Electric Drive Transportation Association stated, “We applaud Congress for extending these charging station tax-credits for the growth of plug-in electric vehicles in the U.S.”. In addition, the U.S. Senate and House of Representatives reinstated a biodiesel tax incentive that had been eliminated in 2009. In an announcement presented on the Biodiesel.org website it said, “The biodiesel tax incentive is structured in a manner that makes the fuel price competitive with conventional diesel fuel in the marketplace.” (www.biodiesel.org). Lastly, the new Tax Bill for CNG and propane, “…extends the 50 cents per gallon excise tax credit retroactively for calendar year 2010 and through December 31, 2011. It also extends tax credit incentives for developing natural gas fueling infrastructure,” (www.tradingmarkets.com). All of these tax credits and incentives are expected to be signed into law by President Obama today, Friday December 17, 2010.

These alternative fuel and technology tax credits and incentives will continue to help the U.S. become more educated about alternative fuel energies, create more U.S. jobs and become less dependent on foreign oil- a step forward to ensuring air quality for future generations.

File your Form 8849 credits at www.Tax8849.com / www.TaxExcise.com today and get instant approval from IRS. It’s easy, simple and secured to do it online. It eliminates credit form errors and make claims easy. Also allows you to get your money faster from the IRS.

Help Desk: 1-866-245-3918       Email: support@taxexcise.com

Claims for Refund of Excise Taxes – Form 8849

The IRS has recently added fraud involving the fuel tax credit to the list of frivolous tax claims being put forth by individuals and businesses. The credit has very defined criteria and applies generally to farmers and fisherman who use fuel for off-highway business purposes. There are some individuals who are trying to claim the credit when in fact their occupation or income level makes the claim unreasonable. If you attempt to claim a tax credit or refund, and it is not justified, you can be liable for up to $5,000 in penalties.

The tax credit is a possibility under the right, and narrowly defined circumstances. Basically, it works like this:

A federal excise tax is imposed on gasoline ($.184 per gallon), clear diesel fuel ($.244 per gallon), and clear kerosene ($.244 per gallon). The amount of these taxes may be credited or refunded if these fuels are used in many types of off-road uses. Common off-road uses include use as heating oil, use in stationary engines, use in non-highway vehicles, and use in separate engines mounted on highway vehicles. Continue reading →

What if My Form 2290 not filed in time to the IRS?

A 2290 can be filed with the IRS at any time after the deadline [August 31st] has passed but the tax due may be subject to penalties and interest. Other points to remember about the 2290 Heavy Use Tax, the 2290 tax is due the next month after the truck is put in service. For trucks on the road in July 2010, the tax is due by August 31, 2010.
For trucks that aren’t put into service until sometime in the month of August, 2010, the tax is due by Sept 30, 2010. And So forth. Also, the tax is pro-rated for trucks that are not in service for the full tax period. The details on the pro-rated tax are in the 2290 instructions. Continue reading →

Tax Credit for Form 2290 Heavy Vehicle Use Tax payers

If you are paying the Heavy Use Tax (IRS Form 2290) and plan to sell your truck during the tax period, you can apply for a credit – meaning you’ll get a pro-rated portion of the tax back.

Sold Truck Credit:

In previous years, you had to pay the $550 tax and if you sold your truck during the tax period, you did not get anything back. You could provide the form to the person you sold the truck to so that they didn’t have to pay the tax in addition to what you already paid. But once you paid the tax, your money was gone. Continue reading →