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Reminder – 2013 Alternative Fuel Mixture Tax Credits Can Only be Claimed on IRS Form 720

As a reminder to all taxpayers note that the $0.50 per gallon alternative fuel mixture tax credit was amended when it was retroactively extended at the beginning of 2013. 

Beginning with all mixtures produced on January 1, 2012, the credit is only available as an excise tax credit under 26 U.S.C. §6426 and can only be claimed on IRS Form 720, Schedule C to the extent of the taxpayer’s excise tax liability for the particular quarter to which the form relates. 

Excess credits cannot be claimed as an excise tax refund on Form 8849 nor as an income tax credit on Form 4136.  Moreover, excess credits cannot be carried back or forward to offset excise taxes paid for other periods.  Taxpayers with no excise tax liability are effectively barred from claiming the alternative fuel mixture tax credit after December 31, 2011.