Tax Credit Extensions

On February 17, 2009, President Obama signed the American Recovery and Reinvestment Act of 2009 into law that contained several positive provisions for propane. On October 3, 2008, former President George W. Bush signed the omnibus financial rescue package that contained three other high priority propane tax credit extensions. Below are the highlights of each. A detailed description of each provision is included in our latest advocacy piece available for download here.

Propane-Specific Provisions

• Alternative Fuel Tax Credit
• Refueling Infrastructure Tax Credit
• Energy Efficient Appliance Tax Credit

General Provisions

• Expensing
• Net Operating Losses (NOL)
• Extension of Bonus Depreciation

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2008 Financial Rescue Bill Extends Propane Tax Credits

Energy Policy Act of 2005 Tax Credits

The Energy Policy Act of 2005 (Public Law 109-58) provides Federal income tax credits to promote energy conservation and the use of alternative fuels. 

Updated May 2007 - New infrastructure tax guidance document.

HOUSING

*These credits have been extended for tax year 2009, but will not appy to tax year 2008.
*In addition, the credit itself has not changed, the dates have just been extended.

In late February 2006, the Internal Revenue Service (IRS) issued three guidance documents relating to the Energy Policy Act tax credits for residences.

Notice 2006-26, Existing Home Credits
   Summary of 2006-26.  Explains the credits and procedures for manufacturers and homeowners of existing housing.
   IRS Notice 2006-26. The actual IRS notice.

Notice 2006-27, New Home Credits
   Summary of 2006-27.  Explains the process under which a contractor may receive a tax credit for constructing a new energy-efficient house.
   IRS Notice 2006-27.  The actual IRS notice.

Notice 2006-28, Manufactured Housing Credits
   Summary of 2006-28.  Explains the process under which a contractor may receive a tax credit for constructing a new energy-efficient manufactured home.
   IRS Notice 2006-28.  The actual IRS notice.

ALTERNATIVE FUELS

In late May 2006, the IRS issued a guidance document about the alternative fuel credit for motor vehicles.  In late September 2006, the IRS issued the guidance document on the alternative fuel credits.  In early May 2007, the IRS issued their notice for the infrastructure tax credit.

Notice 2006-54, New Qualified Alternative Fueled Motor Vehicle Credit. 
   Summary of 2006-54.  Explains the process to qualify vehicles for the alt fuel vehicle tax credit and which kinds of vehicles are eligible.
   IRS Notice 2006-54.  The actual IRS notice.

Notice 2006-92, Alternative Fuel, Alternative Fuel Mixture Credit. *This credit has been extended through 2009. In addition, the credit itself has not changed, the dates have just been extended.
   Summary of 2006-92.  Provides guidance on the alternative fuel excise tax and the credit, and includes details regarding the mechanics for filing to claim the credit.
   IRS Notice 2006-92.  The actual IRS notice.
   Forklift Operators Tax Credit.  This handy NPGA document describes the tax credits available to propane forklift operators and how to obtain them.

Notice 2007-43, Alternative Fuel Vehicle Refueling Property Credit. *This credit has been extended through 2010. In addition, the credit itself has not changed, the dates have just been extended.
   Summary of 2007-43.  Summary of the IRS interim guidance for the tax credit for alternative fuel vehicle refueling property, more commonly known as the infrastructure refueling tax credit.
   IRS Notice 2007-43.  The actual IRS notice.  IRS Form 8911 is available via the link.
   

Other Documents and Links

Tax Credit Eligible Equipment: Gas- and Oil-Fired Furnaces 95% AFUE or Greater
This GAMA publication lists the manufacturer of propane gas furnaces which are eligible for the tax credit.  The furnaces must have been purchased between Jan. 1, 2006 and Dec. 31, 2007 to be used for the credit. 

Energy-Efficiency Home and Vehicle Tax Credits - Last year's energy bill contained many tax credits that consumers and businesses can use to lower their heating bill and 2006 Federal tax bite.  This pages available via the link list in an easy-to-read format the many tax benefits available to consumers.

Energy Tax Incentives -- Energytaxincentives.org is another public policy Website that describes the tax incentives found in the 2005 energy act.