Alcohol Fuel Credit (Federal)

Summary

Last modified on May 24, 2011.

Financial Incentive Program

Place	United States
Name	Alcohol Fuel Credit
Incentive Type	Corporate Tax Credit
Applicable Sector	Commercial, Industrial
Eligible Technologies	Ethanol, Methanol
Active Incentive	No
Implementing Sector	Federal
Energy Category	Renewable Energy Incentive Programs
Amount	.40 to .60 per gallon
Maximum Incentive	.60/gallon
Program Administrator	U.S. Internal Revenue Service
Website	http://www.irs.gov/pub/irs-pdf/p378.pdf
References	DSIRE

Summary

Businesses that sell or use alcohol as a fuel may be eligible for an income tax credit. The alcohol fuel credit consists of a straight alcohol credit, an alcohol mixture credit, and a small ethanol producer credit. Alcohol eligible for the credit includes methanol and ethanol. This includes methanol produced from methane gas formed in waste disposal sites.

Credits range from $.3926 to $.60 per gallon, depending on the proof and type of alcohol.

IRS Publication 378, Fuel Tax Credits and Refunds, provides information on the three tax credits. A business can take the alcohol fuel credit by completing Form 6478, Credit for Alcohol Used as Fuel, and attaching it to their income tax return. The IRS general web site listed below under "Contact" provides a "Forms and Publications Finder." Enter the form or publication name or number that you are interested in, and click on "GO" to receive the requested form or publication.

Authorities (Please contact the if there are any file problems.)

Authority 1:	26 USC § 40

Incentive Contact

Contact Name	Public Information - IRS
Department	U.S. Internal Revenue Service
Address	1111 Constitution Avenue, N.W.
Place	Washington, District of Columbia
Zip/Postal Code	20224
Phone	(800) 829-1040
Website	http://www.irs.gov

• Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.