Alcohol Fuel Credit (Federal)
Last modified on May 24, 2011.
Financial Incentive Program
|Name||Alcohol Fuel Credit|
|Incentive Type||Corporate Tax Credit|
|Applicable Sector||Commercial, Industrial|
|Eligible Technologies||Ethanol, Methanol|
|Energy Category||Renewable Energy Incentive Programs|
|Amount||.40 to .60 per gallon|
|Program Administrator||U.S. Internal Revenue Service|
|Date added to DSIRE||2002-03-15|
|Last DSIRE Review||2004-06-08|
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|
|Contact Name||Public Information - IRS|
|Department||U.S. Internal Revenue Service|
|Address||1111 Constitution Avenue, N.W.|
|Place||Washington, District of Columbia|
- Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.