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IRS Issues Procedures for Claiming Alternative Fuels Credit

Article by The Coalition for Renewable Natural Gas

IRS Notice 2018-21 was issued on March 7. It establishes the procedures for claiming the $0.50 credit for alternative fuel sold or used in calendar year 2017. 

The notice requires that a single one-time claim for all alternative fuels (including CNG and LNG) should be made no later than September 29, 2018. Claims should be made using Form 8849 (Claim for Refund of Excise Taxes) accompanied by Schedule 3(Certain Fuel Mixtures and the Alternative Fuel Credit). Claims for 2017 may be submitted at any time, but April 2 is the official start date.

To file a claim, a person must be a registered alternative fueler. If you previously submitted claims to the IRS or are a retail seller of fuel, then you are likely registered. First time claimants who are not registered must file Form 637 (Application for Registration) prior to making claims for credits. This information does not constitute tax, accounting or legal advise. If you file a claim, you should seek advice from tax counsel or an accountant to ensure that claims are properly submitted. 

Notice 2018-21 is available HERE.

IRS tax forms can be accessed HERE