IRS Releases Rules for Claiming Alternative Fuel and Alternative Fuel Mixture Credits

On September 13th, the Internal Revenue Service released Notice 2022-39, providing rules for claiming the alternative fuel credit for sales and purchases made in the first three calendar quarters of 2022. Taxpayers who wish to claim the credit must file Form 8849, Claim for Refund of Excise Taxes, and include Schedule 3, Certain Fuel Mixtures and the Alternative Fuel Credit. The filing period for 2022 one-time alternative fuel credit claims begins October 13, 2022, and ends on April 11, 2023.

The notice also provides instructions for claiming the alternative fuel mixture credit for the first and second calendar quarters of 2022. To claim that credit, taxpayers must file a Form 720X, Amended Quarterly Federal Excise Tax Return, during the filing period that begins October 13, 2022. Claims for the alternative fuel mixture credit must be made by the later of three years from the time the return was filed or two years from the time the excise tax under Internal Revenue Code section 4081 was paid.

The credits, which expired December 31, 2021, were extended through 2024 by the Inflation Reduction Act (Pub. L. 117-169).