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The signing of the Bipartisan Budget Act of 2018 retroactively extends many alternative fuel tax credits

The following list is provided to Clean Cities Coordinators as part of its Technical Response Service, a benefit to U.S. Department of Energy designated Clean Cities coalitions.

There are several Bipartisan Budget Act provisions with implications for alternative fuels:  The changes outlined above are effective immediately.
See the Alternative Fuels Data Center Federal Laws and Incentives page for descriptions of each incentive.
  •  Alternative Fuel Infrastructure Tax Credit:
    Section 40404 extends the tax credit for alternative fuel infrastructure through December 31, 2017. Fueling equipment for natural gas, propane, liquefied hydrogen, electricity, E85, and biodiesel are eligible for a tax credit of 30 percent, up to $30,000. Residential fueling equipment may receive a tax credit up to $1,000.
  • Alternative Fuel Mixture Excise Tax Credit:
    Section 40415 also extends the $0.50 per gallon tax credit for alternative fuel used to produce a mixture containing at least 0.1 percent gasoline, diesel, or kerosene through December 31, 2017. Alternative fuel blenders must be registered with the Internal Revenue Service (IRS). The U.S. Department of the Treasury (Treasury) will issue guidance for how to submit claims for this credit by March 11, 2018.
  • Biodiesel Income Tax Credit:
    Section 40407 extends the biodiesel income tax credit through December 31, 2017. A taxpayer that delivers unblended biodiesel (B100) into the tank of a vehicle may be eligible for a $1 per gallon of biodiesel, agri-biodiesel, or renewable diesel tax credit.
  • Section 40407 also extends the $0.50 per gallon tax credit for biodiesel, agri-biodiesel, or renewable diesel used to produce a mixture containing at least 0.1% gasoline, diesel, or kerosene through December 31, 2017. Alternative fuel blenders must be registered with the IRS. Treasury will issue guidance for how to submit claims for this credit by March 11, 2018.

  • Section 40406 extends the tax credit for second generation biofuel producers through December 31, 2017. Second generation biofuel producers registered with the IRS may be eligible for a $1.01 per gallon of biodiesel tax credit.

Big thanks to Transportation Energy Partners (TEP) for this information!

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