With the passing of the Inflation Reduction Act, the alternative fuel tax and alternative fuel mixture credits have been retroactively reinstated and extended through December 31, 2024. The IRS released Notice 2022-39 providing guidance for taxpayers to make a one-time claim for these credits. The guidance provides detailed instructions for claiming the alternative fuel tax credit under IRC Sec 6426(d) and 6427(e) for the first three quarters of 2022. In addition, the Notice provides guidance for reducing excise tax liabilities under IRC Sec. 6426(e) for the first and second quarter of 2022 for taxpayers eligible for the alternative fuel mixture credit.

The one-time alternative fuel claim must be submitted during the 180 day claim period. This period begins on October 13, 2022 and ends on April 11, 2023. For claims submitted before the claim period, the IRS will deem them to have been made on October 13, 2022. The IRS will not process any claims filed after April 11, 2023. As with previous reinstatements of the alternative fuel tax credit, taxpayers must carefully follow all procedures outlined in the Notice in order for the IRS to process the one-time claim.

Reach out to your HBK Tax Advisor if you have any questions.