Retroactively Claiming Alternative Fuel Credits Under The Inflation Reduction Act

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.

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About the Author(s)
Donald is a Senior Tax Manager in the Tax Advisory Group of HBK CPAs and Consultants. Donald has over nine years of experience in taxation with a focus on privately held businesses and high-net-worth individuals. His areas of expertise include partnerships, S corporations, C corporations and individual taxation. He also assists his clients with year-end planning, merger and acquisition planning, choice of entity planning, and conflict resolution.
Hill, Barth & King LLC has prepared this material for informational purposes only. Any tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or under any state or local tax law or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein. Please do not hesitate to contact us if you have any questions regarding the matter.