IRS Provides Guidance for Claiming Reinstated Biodiesel Tax Credits for 2014

Saturday, January 31, 2015 12:23 PM | NCSA Website Manager (Administrator)
The IRS issued rules for making one-time claims for payment of retroactively extended tax credits for biodiesel mixtures and alternative fuels under tax code Sections 6426 and 6427.

In January 16 guidance (Notice 2015-3), the Internal Revenue Service also provided instructions for how a claimant may offset its tax code Section 4081 liability with the Section 6426(e) alternative fuel mixture credit, and for making certain income tax claims for biodiesel, second-generation biofuel and alternative fuel.

The credits and payments expired for blenders of, and sales and uses of, biodiesel after Dec. 31, 2013 (Sept. 30, 2014, for sales and uses of liquefied hydrogen), but were reinstated retrospectively by Congress in the Tax Increase Prevention Act of 2014, the tax extenders law enacted in December.

The law required Treasury to provide guidance for one-time submission of claims for 2014, and required a 180-day period for submission of claims, beginning within 30 days of the guidance issuance.

The new notice also said that claimants that filed so-called protective or anticipatory claims during 2014 should refile the claims, as the IRS won't act on the previously filed claims.

The IRS said taxpayers claiming the 2014 nonrefundable income tax credit for second-generation biofuel producers should continue to submit those claims separately.

The notice will appear in Internal Revenue Bulletin 2015-6 dated Feb. 9 and is also available here


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