Answer: On December 17, 2010, President Obama signed H.R. 4853, the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (Public Law No: 111-312). This Act extends and reinstates several alternative fuel tax credits through December 31, 2011. See the Federal Incentives & Laws Web page for additional information.
Extended tax credits include:
- Qualifed Alterntive Fuel Infrastructure Tax Credit: http:///www.afdc.energy.gov/afdc/laws/law/US/351
- Volumetric Ethanol Excise Tax Credit (VEETC): http://www.afdc.energy.gov/afdc/laws/law/US/399
- Small Ethanol Producer Tax Credit: http://www.afdc.energy.gov/afdc/law/law/US/342
The Act also reinstates several tax credits that expired after December 31, 2009:
- Alternative Fuel Excise Tax Credit: http://www.afdc.energy.gov/afdc/laws/law/US/319
- Alternative Fuel Mixture Excise Tax Credit: http://www.afdc.energy.gov/afdc/laws/law/US/417
- Biodiesel Mixture Excise Tax Credit: http://www.afdc.energy.gov/afdc/laws/law/US/395
- Biodiesel Income Tax Credit: http://www.afdc.energy.gov/afdc/laws/law/US/396
Special Rule for 2010 Excise Tax Credit Claims:
The Alternative Fuel, Alternative Fuel Mixture, and Biodiesel Mixture Excise Tax Credits were reinstated retroactively, meaning taxpayers may submit a one-time claim for qualified fuel sold or used during the 2010 tax year. The U.S. Internal Revenue Service (IRS) has issued special guidance to allow a 180-day period for the submission of these claims. Please refer to the IRS Notice 2011-10 for additional information (http://www.irs.gov/pub/irs-drop/n-11-10.pdf).
Two vehicle purchase incentives expired after December 31, 2010, and were not extended:
- Qualified Alternative Fuel Motor Vehicle Tax Credit
- Light-Duty Hybrid Electric Vehicle and Advanced Lean Burn Vehicle Tax Credit
The descriptions of these expired tax credits, including the expiration dates, will remain on the Federal Incentives & Laws Web site until the federal tax filing deadline.