Fuel Tax Credit Group
Qualified Alternative Fuel Motor Vehicle (QAFMV) Tax Credit
A Cost Recovery Opportunity
Opportunity Overview
A tax credit is available toward the purchase of QAFMVs, which may be either new original equipment manufacturer vehicles or new / used vehicles that have been repowered by an aftermarket conversion company to operate on an alternative fuel.
The credit is equal to the applicable percentage of the incremental cost of the new QAFMV. Specifically, the tax credit for the purchase of a new qualified alternative motor vehicle (e.g., a new dedicated propane vehicle) is 50% of the incremental cost (the difference in purchase price between a gasoline- or diesel-fueled vehicle and a propane-powered version of the same model). An additional credit of 30% of the maximum allowable incremental cost may be given if the vehicle meets certain emissions standards. The credit may not exceed $4,000 to $32,000, with the maximum allowable credit based upon the vehicle’s weight.
Qualified alternative fuel vehicles are fueled solely by compressed natural gas (CNG), liquefied natural gas, liquefied petroleum gas (propane), hydrogen, any liquid that is at least 85% methanol, or a mixture of one of these fuels and a petroleum-based fuel, and that meets certain additional requirements. The vehicle must be placed in service as an alternative fuel vehicle on or after January 1, 2006. This tax credit expires December 31, 2010.
Procedures
Filing a Claim: The credit against tax is filed with an original or amended federal tax return. Applicable statutory periods apply.
How Can We Assist You?
The Fuel Tax Credit Group can provide the following tax credit services:
· Analysis of your company’s specific facts and business operations to determine eligibility for tax credit benefit.
· Assessment for certification that a vehicle meets the requirements to claim the QAFMV credit and confirm the allowable credit with respect to that vehicle.
· Analysis of your company’s financial books and records to determine and calculate the tax credit amount to be claimed for the appropriate period.
· Preparation of tax credit claims, and assistance with the filing of applicable credit claims with the IRS.
· Preparation and organization of relevant data and documentation to support the tax credit claims filed with the IRS.
· If applicable, audit support for filed claims.
· Work with key company personnel to establish procedures to stream line the information gathering process to efficiently obtain the pertinent data to file tax credit claims on a go forward basis.
Timing
For calendar year taxpayers (i.e. December 31 tax year end) –
· QAFMV placed in service from January 1, 2006 – December 31, 2006: A federal amended tax return must be filed within 3 years after the date the corporation filed its original tax year 2006 return.
· QAFMV placed in service from January 1, 2007 – December 31, 2007: A federal amended tax return must be filed within 3 years after the date the corporation filed its original tax year 2007 return.
· QAFMV placed in service from January 1, 2008 – December 31, 2008: The credit is claimed with the original tax year 2008 return by the extended due date, September 15, 2009.
Contact
Teig Lawrence, Partner
Fuel Tax Credit Group, LLC
4770 Biscayne Boulevard, Suite 940
Miami, Florida 33137
Phone: 305-576-3335
Fax: 305-576-4260
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