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General, Tax & Assurance Guidance

Deadlines Extended for Energy-Related Tax Credits

Posted on January 13, 2020 by

Margaret Amsden

Margaret Amsden

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Alternative Fuel Tax Credit (IRC 6427(d)) and Nonbusiness Energy Property (IRC 25C) are two key “extenders” which could impact your 2018 tax return. While further guidance still needs to be published, you should be aware of the implications of these extenders. The H.R. 1865 Further Consolidated Appropriations Act, 2020 was signed by the President and became Public-Law No: 116-94 on 12/20/19. These two credits’ expiration date was extended from 12/31/2017 to 12/31/2020.

For the Alternative Fuel Tax Credit:

  • Did you previously file Form 4136 claiming this credit in 2017?
  • Is your business considered a Registered Alternative Fueler?
  • Did your business use propane, liquefied petroleum gas, compressed or liquefied natural gas, and other specifically listed fuel types in a motor vehicle or motorboat?

If so, you could potentially claim a credit of $0.50 per gallon of alternative fuel that was used in 2018.

For Nonbusiness Energy Property:

  • Did you install qualified residential energy property expenditures which include a furnace, central fan, central air conditioner, or water heater in 2018?
  • Did you install qualified energy efficiency improvements which include energy-efficient windows, doors, or installation material in 2018?
  • Were these installations at your principal residence in the United States?

If so, you could potentially claim a credit of up to $500 for the installation of these items. (Note that the maximum credit is $500 over the lifetime of the taxpayer).

While there are other tax credit energy extenders such as credits for Biodiesel & Renewable Diesel, New Energy Efficient Home Credit, and more, the two above could directly impact your tax planning for 2020.  Contact your CPA with specific questions.

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Margaret Amsden

Shareholder, Private Client Services

Margaret leads the firm’s private client services group as the point person for individual, estate and succession planning tax strategies.

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