Alternative Fuel Tax Credit Extensions in the Consolidated Appropriations Act of 2016

On Friday, December 18, 2015, President Obama signed the Consolidated Appropriations Act of 2016 (H.R. 2029). Division Q, the Protecting Americans from Tax Hikes Act (PATH Act), retroactively extends many tax credits.

There are several PATH Act provisions with implications for Clean Cities portfolio items:

  • Alternative Fuel Infrastructure Tax Credit.Section 182 extends the tax credit for alternative fuel infrastructure through December 31, 2016. Fueling equipment for natural gas, propane, liquefied hydrogen, electricity, E85, and biodiesel are eligible for a tax credit of 30%, up to $30,000. Residential fueling equipment may receive a tax credit up to $1,000.
  • Alternative Fuel Excise Tax CreditSection 192 extends the $0.50 per gallon tax credit for alternative fuels, including liquefied hydrogen, through December 31, 2016.
  • Alternative Fuel Mixture Excise Tax CreditSection 192 also extends the $0.50 per gallon tax credit for alternative fuel used to produce a mixture containing at least 0.1% gasoline, diesel, or kerosene through December 31, 2016. Alternative fuel blenders must be registered with the Internal Revenue Service (IRS).
  • Biodiesel Income Tax CreditSection 185 extends the biodiesel income tax credit through December 31, 2016. A taxpayer that delivers unblended biodiesel (B100) into the tank of a vehicle may be eligible for a $1.00 per gallon of biodiesel, agri-biodiesel, or renewable diesel tax credit.
  • Biodiesel Mixture Excise Tax Credit.Section 185 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, 2016. Alternative fuel blenders must be registered with the IRS.
  • Second Generation Producer Tax Credit.Section 184 extends the tax credit for second generation biofuel producers through December 31, 2016. Second generation biofuel producers registered with the IRS may be eligible for a $1.01 per gallon of biodiesel tax credit.

The changes outlined above are effective immediately. To view the full text of the PATH Act, visithttps://www.gpo.gov/fdsys/pkg/BILLS-114hr2029enr/pdf/BILLS-114hr2029enr.pdf. See the Alternative Fuels Data CenterFederal Laws and Incentives page for descriptions of each incentive.

2015-12-22T15:23:39+00:00 December 22nd, 2015|In the News|0 Comments

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