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.
| Implementing Sector: | Federal |
| Category: | Financial Incentive |
| State: | Federal |
| Incentive Type: | Corporate Tax Credit |
| Web Site: | http://www.irs.gov/pub/irs-pdf/p378.pdf |
| Administrator: | U.S. Internal Revenue Service |
| Start Date: | |
| Eligible Renewable/Other Technologies: |
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| Incentive Amount: | $.40 to $.60 per gallon |
| Maximum Incentive: | $.60/gallon |
| Name: | 26 USC § 40 |
| Name: | Public Information - IRS |
| Organization: | U.S. Internal Revenue Service |
| Address: |
1111 Constitution Avenue, N.W. Washington DC 20224 |
| Phone: | (800) 829-1040 |
This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.
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