Forklifts, golden eggs? - an easy and quick refundable credit may be available for those taxpayers that use a forklift in warehouse

June 2011


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

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Neil Bristol
U.S. Automotive Tax Leader
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