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How to Claim Retroactive 2022 Alternative Fuel Tax Credit

The Inflation Reduction Act (IRA) renewed the 37 cents per gallon alternative fuel tax credit for propane motor fuel sold retroactively for 2022 and prospectively through 2024. Alternative Fuel tax credit claimants must follow specific instructions in Notice 2022-39, summarized below, to make a

one-time claim for the alternative fuel credit. The one-time claim is for alternative fuels sold or used during the first, second, and third calendar quarters of 2022 (January 1, 2022 - September 30, 2022). How To Make a 2022 One-Time Alternative Fuel Claim • Claimants must submit claims on Form 8849, Claim for Refund of Excise Taxes. • Claimants must include Schedule 3 (Form 8849), Certain Fuel Mixtures, and the Alternative Fuel Credit with their submission and enter any amounts on Line 3 of Schedule 3 (Form 8849), as appropriate. • Each claimant must claim the alternative fuel credits and payments for which the claimant is eligible for the first, second, and third calendar quarters of 2022 on a single Form 8849 and Schedule 3 (Form 8849). • Claimants must follow the instructions to Form 8849 and Schedule 3 (Form 8849) when preparing their submission to the extent that those instructions do not conflict with this Notice 2022-39. • Claims may be submitted electronically or by mail. Electronic submission is strongly encouraged and will result in faster claim processing and payment. Claims may be submitted electronically through any electronic return originator, transmitter, or intermediate service provider participating in the IRS e-file program for excise taxes. Any claimant that prefers to submit a paper claim may mail its claim to the address listed for Schedule 3 (Form 8849) in the instructions to Form 8849 under Where to File. • Claimants must be registered by the IRS to make a 2022 one-time alternative fuel claim. Claimants not already registered by the IRS may apply to the IRS for registration by filing Form 637, Application for Registration (For Certain Excise Tax Activities), and following the instructions to Form 637. • Claimants must have and maintain adequate records to substantiate eligibility for the 2022 one-time alternative fuel claim. The 180-day claim period for making a 2022 one-time alternative fuel claim begins on October 13, 2022, and ends on April 11, 2023. So you cannot start submitting your retroactive claims until October 13, 2022.


IRS NOTICE 2022-39

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