Biodiesel Credits Will Expire at the End of 2013

Dec 12, 2013
BIODIESEL CREDITS WILL EXPIRE AT THE END OF 2013 Chairman of the House Ways and Means Committee, Dave Camp (R-MI) has announced that Congress will not consider legislation to approve a package of
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Biodiesel Credits Will Expire at the End of 2013

Dec 12, 2013

BIODIESEL CREDITS WILL EXPIRE AT THE END OF 2013

Chairman of the House Ways and Means Committee, Dave Camp (R-MI) has announced that Congress will not consider legislation to approve a package of tax extenders before the end of 2013. Such legislation typically includes the biodiesel and alternative fuel tax credits which are currently set to expire on December 31, 2013. Rep. Camp has not indicated whether Congress will take up the extenders at the beginning of 2014 and look to pass them retroactively or incorporate them into a larger package of tax reforms.

With the credits expiring, taxpayers will not be able to claim either the biodiesel, renewable diesel or alternative fuel tax credits for any previously eligible production, blending or sales that occur in 2014. Taxpayers will be able to file for credits that were earned prior to the expiration date on Forms 720, 8849, 4136 and 8864 that are timely filed in 2014.

Pennsylvania To Eliminate Fuel Tax and Move Entirely To Oil Company Franchise Tax

Dec 05, 2013
PENNSYLVANIA TO ELIMINATE FUEL TAX AND MOVE ENTIRELY TO OIL COMPANY FRANCHISE TAX Pennsylvania’s governor has signed into law sweeping transportation legislation that includes significant changes
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Pennsylvania To Eliminate Fuel Tax and Move Entirely To Oil Company Franchise Tax

Dec 05, 2013

PENNSYLVANIA TO ELIMINATE FUEL TAX AND MOVE ENTIRELY TO OIL COMPANY FRANCHISE TAX

Pennsylvania’s governor has signed into law sweeping transportation legislation that includes significant changes to the way the state taxes motor fuel. Beginning on January 1, 2014, the $0.12 per gallon Liquid Fuel and Fuel Tax will be eliminated and the State will tax gasoline and diesel fuel solely through the Oil Company Franchise Tax collected by licensed distributors on sales to unlicensed entities. The Oil Company Franchise Tax is set to increase annually under the law. The law does not state any changes to the taxation of jet fuel.

The new law prescribes an annual increase in both the millage rate and the average wholesale price of fuel on which the tax rate is determined. The millage rate is increased by an additional 64 mills in calendar year 2014, 49 mills in calendar year 2015, 48 mills in calendar year 2016, 41 mills in calendar year 2017, and 39 mills in each succeeding calendar year. The average wholesale price of fuel will increase to $1.87 after December 31, 2013, and before January 1, 2015; $2.49 after December 31, 2014, and before January 1, 2017; and after December 31, 2016, the average wholesale price will be determined by the Department of Revenue, but in no case will the average wholesale price be less than $2.99 per gallon.

Based on this, the Oil Company Franchise Tax rates for calendar years 2014 through 2016 will be as follows:

Gasoline

 

Total Mills Per Gallon

Wholesale Price of Fuel

Tax Rate (Rounded to Next Highest Tenth)

2014

217.5

$1.87

$0.407

2015

202.5

$2.49

$0.504

2016

201.5

$2.49

$0.502

2017

194.4

TBC

TBC

2018

192.5

TBC

TBC

Diesel

 

Total Mills Per Gallon

Wholesale Price of Fuel

Tax Rate (Rounded to Next Highest Tenth)

2014

272.5

$1.87

$0.510

2015

257.5

$2.49

$0.641

2016

256.5

$2.49

$0.639

2017

249.5

TBC

TBC

2018

247.5

TBC

TBC

“Reminder – 2013 Alternative Fuel Mixture Tax Credits Can Only be Claimed on IRS Form 720”

Oct 14, 2013
REMINDER – 2013 ALTERNATIVE FUEL MIXTURE TAX CREDITS CAN ONLY BE CLAIMED ON IRS FORM 720 As a reminder to all taxpayers note that the $0.50 per gallon alternative fuel mixture tax credit was
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“Reminder – 2013 Alternative Fuel Mixture Tax Credits Can Only be Claimed on IRS Form 720”

Oct 14, 2013

REMINDER – 2013 ALTERNATIVE FUEL MIXTURE TAX CREDITS CAN ONLY BE CLAIMED ON IRS FORM 720

As a reminder to all taxpayers note that the $0.50 per gallon alternative fuel mixture tax credit was amended when it was retroactively extended at the beginning of 2013.

Beginning with all mixtures produced on January 1, 2012, the credit is only available as an excise tax credit under 26 U.S.C. §6426 and can only be claimed on IRS Form 720, Schedule C to the extent of the taxpayer’s excise tax liability for the particular quarter to which the form relates.

Excess credits cannot be claimed as an excise tax refund on Form 8849 nor as an income tax credit on Form 4136. Moreover, excess credits cannot be carried back or forward to offset excise taxes paid for other periods. Taxpayers with no excise tax liability are effectively barred from claiming the alternative fuel mixture tax credit after December 31, 2011.

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“Reminder – Alabama Wholesale Oil License Fee Due October 15, 2013”

Oct 14, 2013
REMINDER – ALABAMA WHOLESALE OIL LICENSE FEE DUE OCTOBER 15, 2013 Taxpayers are reminded that Alabama’s Wholesale Oil License Fee return and payments and are due on October 15, 2013. The
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“Reminder – Alabama Wholesale Oil License Fee Due October 15, 2013”

Oct 14, 2013

REMINDER – ALABAMA WHOLESALE OIL LICENSE FEE DUE OCTOBER 15, 2013

Taxpayers are reminded that Alabama’s Wholesale Oil License Fee return and payments and are due on October 15, 2013.

The form is available at www.revenue.alabama.gov/motorfuels/mfforms.cfm and must be submitted online at www.myalabamataxes.alabama.gov.

The fee is imposed at a rate of $0.0075 per gallon on all diesel fuel which is defined to include undyed diesel and kerosene, dyed diesel and kerosene, special fuels and blended fuels containing diesel. Transmix is exempted from the fee (but note that effective August 1, 2013 transmix is subject to the diesel tax with licensed suppliers able to claim a credit for transmix not used a fuel and transmix delivered to a refinery for further processing). Additionally, all Alabama exports of diesel are exempted from the fee

“Minnesota to Begin Taxing Sales of Motor Fuel to Government Entities on January 1, 2014”

Oct 14, 2013
MINNESOTA TO BEGIN TAXING SALES OF MOTOR FUEL TO GOVERNMENT ENTITIES ON JANUARY 1, 2014 On January 1, 2014 rack sales of gasoline, diesel and dyed diesel to government entities will no longer be tax
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“Minnesota to Begin Taxing Sales of Motor Fuel to Government Entities on January 1, 2014”

Oct 14, 2013

MINNESOTA TO BEGIN TAXING SALES OF MOTOR FUEL TO GOVERNMENT ENTITIES ON JANUARY 1, 2014

On January 1, 2014 rack sales of gasoline, diesel and dyed diesel to government entities will no longer be tax free.

A government entity will be able to purchase dyed diesel tax free if it has a special fuel license.

Federal Government Shutdown – Impact on Internal Revenue Service Functions

Oct 07, 2013
At 12.01am on October 1, 2013, after Congress failed to reach an agreement to fund the government, the federal government shut down. This has a huge impact on many government agencies including the
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Federal Government Shutdown – Impact on Internal Revenue Service Functions

Oct 07, 2013

At 12.01am on October 1, 2013, after Congress failed to reach an agreement to fund the government, the federal government shut down. This has a huge impact on many government agencies including the functions of the Internal Revenue Service (“IRS”). While the government remains shutdown, the IRS will be operating in a very limited mode. To that end:

  • Audits and other proceedings before the IRS including meetings and proceedings before IRS appeals will likely be postponed or suspended. Pending audits and meetings will effectively be canceled to be rescheduled for a later date when the government is funded and re-opens;
  • Processing of Applications for Registration on Form 637 will be delayed;
  • Both the Office of Chief Counsel and Field Offices will operate in a very limited capacity, delaying the issuance of guidance and response to inquiries on tax-related questions;
  • Refunds will continue to be processed but may be delayed.

Please note that all tax returns and payments must continue to be filed and paid in a timely manner during a government shutdown, although they may not be processed by the IRS until the government re-opens.