The Alternative Fuel Tax Credit has been extended most recently through December 31, 2016. Dyed diesel fuel can be used in any diesel powered vehicle in an off road capacity.

“This tax credit encourages investments in cleaner fuel options for vehicle use,” Fletcher said. Off-Highway Use Includes non-highway vehicles such as farm tractors, right-of-way mowers, caterpillars, grader, forklifts, cranes, non-licensed motor vehicles used solely off-highway, stationary engines, diesel mixed with asphalt, etc. This tax incentive applies to propane that is used as a fuel to operate motor vehicles including forklifts.The tax credit of %.50 per gallon is available for propane used between January 1, 2015 and December 31, 2016. The following uses of fuels are considered nontaxable for excise tax purposes (see Table 2-1 of Publication 510, Excise Taxes (Including Fuel Tax Credits and Refunds), or the instructions for Form 720 for a complete list of nontaxable uses): Fuels used for off-highway business uses (e.g., fuel used to power a generator for a business); light vehicles travelling off public roads or on private roads. (Read more from OEM Off-Highway about the use of electric vehicles in underground mining in “Electric underground,” 11224086). While there is no limitation on the types of vehicles fuel cells can be used on, Goodarzi says vehicles traveling 100 miles or more a day are the best fit for fuel cells. fuel excise tax on fuel that is purchased, but not used on state highways , although it appears that some eligible taxpayers are not claiming it. An off-highway vehicle (OHV) is a type of vehicle designed specifically for off-road use. The dyed fuel must be removed if the vehicle is to be used on a public highway.

and other non-highway purposes. In 2005, Congress enacted the Safe, Accountable, Flexible and Efficient Transportation Equity Act of 2005, otherwise known as the Highway Bill. The amount depends on when you acquire the fuel, what fuel you use and the activity you use it in. The Alternative Fuel Tax Credit (AFTC) Extension Act of 2019 was introduced by Reps. Lizzie Fletcher (D-TX) and Markwayne Mullin (R-OK). The claimant must have documentation showing that tax was paid on the purchase on any type claim on which a refund claim … Fuel is dyed to distinguish what can be used on road (taxed fuel) and off road (untaxed fuel). Statute does not provide quantifiable performance meas ures for the tax expenditures. Alternative Fuel Excise Tax Credit 2016. Some can be driven on the road, but the vast majority of drivers reserve their OHVs for recreating in places that regular vehicles cannot go. Fuel tax credits rates also change regularly so it's important to check the rates each time you do your business activity statement (BAS). Alternative Fuel Tax Credit.