Propane forklift truck customers could be eligible for a 50-cent-per-gallon tax credit as part of the SAFE Transportation Equity Act of 2005. The alternative fuel tax credit is a credit against the excise tax imposed on the retail sale or use of alternative fuels such as LPG (or propane).
Effective October 1, 2006 through September 30, 2009, this credit has the potential to provide thousands of dollars of savings annually!
What Are My Potential Tax Savings?
The potential tax savings would be the actual gallons (or gallon equivalents) of
alternative fuel used (or sold) in which the federal excise tax was paid (by you)
multiplied by 50 cents.
How Do I Claim The Credit?
Note that the forklift truck must be associated with a business or trade.
• Register with the IRS and be classified as an “Alternative Fueler.”
• This is accomplished by completing and mailing IRS Form 637 entitled
Application for Registration for Certain Excise Tax Activities.
• If you already have a Certificate of Registry or a Letter of Registration, you are
grandfathered in. However, everyone must be registered by July 1, 2007.
• File IRS Form 4136 (available at www.irs.gov) at the end of the taxable year.
This form allows you to claim a credit against your income tax liability.
• The credit is refundable even if you have no further tax liability.
• For more detailed information please contact your professional tax advisor.
Please note that Mitsubishi Forklift Trucks is not in the business of giving tax advice and this is not to be interpreted as tax consulting services. Please see your professional tax advisor to see if you are eligible to claim the credit and to
correctly determine your tax savings.
The above information was provided by Mitsubishi ForkLift Trucks