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Are there any energy tax incentives available at the federal-level for fueling equipment with natural gas or propane? If so, from a tax compliance perspective, what form(s) need to be completed and filed with the IRS?

Energy Credits
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Peter Scalise, SAX LLP


Yes, there is an energy tax incentive available for fueling equipment with Natural Gas, Liquefied Petroleum Gas (e.g., Propane), as well as for Electricity, E85, or Diesel Fuel Blends containing a minimum of 20% biodiesel installed between January 1, 2006, and December 31, 2013. This particular energy tax incentive is the "Alterative Fuel Vehicle Refueling Property Credit" and is
eligible for a tax credit of 30% of the cost, not to exceed $30,000. As a caveat, both permitting
and inspection fees are not included in covered expenses. It should be duly noted that fueling station owners who install equipment at multiple sites are allowed to use the credit towards each location. Consumers who purchased qualified residential fueling equipment prior to December 31, 2013, may receive credit of up to $ 1,000. Unused credits that qualify as general business tax credits, as defined by the IRS, may be carried back one year and carried forward 20 years.

From a tax compliance perspective, Form 8911 must be completed and filed with the IRS. Please contact me with any further questions and thanks very kindly for your initial inquiry.



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