The IRS today released an advance version of Notice 2016-5 providing rules for claimants to make a one-time claim for credits and payments for biodiesel (including renewable diesel) mixtures and alternative fuels sold or used during calendar year 2015. These incentives were retroactively extended by the tax legislation enacted on December 18, 2015.
Notice 2016-5 [PDF 29 KB] also provides guidance for claiming the alternative fuel mixture excise tax credit for 2015.
Provisions in the “Protecting Americans from Tax Hikes Act of 2015” (PATH Act, enacted December 18, 2015) extend for two years—from January 1, 2015, through December 31, 2016—excise tax credits, income tax credits, and excise tax payments with respect to biodiesel and alternative fuel incentives.
The PATH Act also includes a provision directing that guidance be issued to provide for a one-time claim for biodiesel mixtures and alternative fuel incentives and further provides that taxpayers be allowed a 180-day period to file these claims.
Today’s notice sets forth procedures for making a one-time claim for the 2015 biodiesel mixture and alternative fuel incentives.
This one-time claim can be filed as early as January 15, 2016. All one-time claims must be filed on or before August 8, 2016.
The notice does not affect 2015 claims for the nonrefundable income taxes credits for second generation biofuel producers, biodiesel mixtures, biodiesel (unmixed), or small agri-biodiesel producers or 2015 claims for the refundable income tax credit for biodiesel mixtures or alternative fuel.
For more information, contact a tax professional with KPMG’s Excise Tax Practice group:
Taylor Cortright | +1 (202) 533 6188 | firstname.lastname@example.org
Deborah Gordon | +1 (202) 533 5965 | email@example.com
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