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Propane Benefits from “Fiscal Cliff” Deal

From the NPGA:

After a protracted post-Christmas negotiation between the President and Congress, an agreement has been reached on important tax related issues affecting all Americans. 

On January 1, 2013 Congress completed action on legislation to avoid the consequences of sending the country over the so-called fiscal cliff. Unfortunately, some other critical decisions affecting the U.S economy have been put off for consideration during the next session of Congress, due to begin tomorrow. 

The legislation, which is expected to be signed by the President, contains several provisions that will affect the propane industry.  First, there were some propane specific energy tax credits that had expired and have been extended through 2013. In addition these provisions were also made retroactive for taxable year 2012. These credits are:

  • Alternative Fuel Tax Credit (50 cents per gallon including propane used in forklifts)
  • Alternative Fuel Infrastructure Tax Credit (30% up to a maximum of $30,000)
  • Energy Efficient Existing Homes Tax Credit ($150 for qualified propane furnace and $300 for qualified propane water heater)
  • Energy Efficient New Homes Tax Credit (Up to $2,000 to an eligible contractor who constructs a qualified energy efficient new home)

 All the same rules apply to these credits as in the past. The only thing that has changed are the expiration dates. 

As always, we encourage anyone who plans to take advantage of any of the above tax provision to consult with their tax advisor or accountant.

This entry was posted in Autogas and Clean Fuels, Forklift Bookmark the permalink. Tags: , , , , , , ,

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