I recently started working with a company that purchases a large quantity of propane for their forklifts. They inquired about possibly taking the Alternative Fuel Tax Credit (AFTC), as propane (Liquefied petroleum gas) is eligible for a $0.50/gasoline gallon equivalent.
The client is purchasing cylinders of propane for their forklifts directly from a supplier and does not have their own fueling station. In doing some research, it is my understanding that a company needs to already be filing form 720 to report excise tax on fuel before they can file a form 8849 or 4136 to take the AFTC. As such, a company simply purchasing “pre-packaged” propane cylinders is not going to qualify for the credit.
If anyone is able to confirm this, I would appreciate hearing your thoughts.
The client is purchasing cylinders of propane for their forklifts directly from a supplier and does not have their own fueling station. In doing some research, it is my understanding that a company needs to already be filing form 720 to report excise tax on fuel before they can file a form 8849 or 4136 to take the AFTC. As such, a company simply purchasing “pre-packaged” propane cylinders is not going to qualify for the credit.
If anyone is able to confirm this, I would appreciate hearing your thoughts.