In 2005, Congress enacted the Safe, Accountable, Flexible and Efficient Transportation Equity Act of 2005, which created the Alternative Fuel credit (AFC), a 50 cents-per-gallon credit for alternative fuels.
The credit may provide significant tax benefit to automotive companies that use forklifts, loaders, and other strictly off-highway machinery in their manufacturing and assembly plants. The credit is easy to claim and is refundable. Included in this article are:
- What fuel is eligible for the credit
- How to claim the credit
- How to accelerate the refund claim
- How to claim the credit for past years
- How to prepare for a potential IRS examination