We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • ::COVID-19 COVERAGE::
  • INDUSTRY PRESS ROOM
  • ABOUT
  • CONTACT
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC.
    • Podcast
    • Blogs
      • Analytics & Big Data
      • Best Practices
      • Dispatches
      • Empowering Your Performance Edge
      • Logistics Problem Solving
      • One-Off Sound Off
      • Public Sector Logistics
      • Two Sides of the Logistics Coin
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • MODEX 2020
    • Upload Your Video
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC.
    • Podcast
    • Blogs
      • Analytics & Big Data
      • Best Practices
      • Dispatches
      • Empowering Your Performance Edge
      • Logistics Problem Solving
      • One-Off Sound Off
      • Public Sector Logistics
      • Two Sides of the Logistics Coin
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • MODEX 2020
    • Upload Your Video
Home » Propane-fueled forklifts catch a (tax) break
inbound

Propane-fueled forklifts catch a (tax) break

March 25, 2011
DC Velocity Staff
No Comments

Proponents of propane fuel like to point out its benefits for forklifts: It lets them maintain consistent power, it enables them to travel at higher speeds than trucks using other energy sources (under certain conditions), and it's cleaner than gasoline and diesel, they say.

Now advocates can add "lower fuel costs" to the list of benefits. The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 included a propane fuel tax credit of 50 cents per gallon through Dec. 31, 2011. The credit is retroactive to Jan. 1, 2010, but there's a catch: To receive the retroactive credit, forklift fleet operators must register with the Internal Revenue Service as an "alternative fueler" and file a one-time claim no later than Aug. 1, 2011, says Brian Feehan, vice president of the Propane Education and Research Council (PERC). Filers can claim 2011 fuel credits at the end of the year.

The law authorizes the tax credit for on- and off-road vehicles that transport loads and have propane-fueled internal combustion engines. The IRS has specifically identified forklifts as eligible, Feehan said in an interview. It's a benefit worth pursuing, he added. "Fifty cents per gallon can add up to a significant amount."

The credit is applied differently to on- and off-road equipment: Forklift operators receive the credit directly, but whoever dispenses the fuel for on-road vehicles gets the tax break. That is, if your delivery vans fuel up at a public station instead of at your own facility, the station operator can claim the credit.

The propane fuel credit is not new. It had been in place (under another law) for three years but expired in 2009; it was then renewed in December 2010, but only for one year. The short timeline, Feehan said, was designed to align the expiration of propane's tax incentives with those of other alternative fuels.

Will Congress extend the 50-cent credit past the end of 2011? Feehan says it's hard to predict, but he believes the main arguments in favor of alternative fuels—reduced dependence on foreign oil and cleaner air—have not gone away and, if anything, are even stronger now than when the credit was first introduced.

Information about the new tax law's propane fuel provisions is available from the National Propane Gas Association. The IRS forms—Form 637 (for registering as an alternative fueler) and Form 4136 (for filing tax credit claims)—are available here.

We should note that the information in this article does not constitute tax advice. Be sure to consult your tax advisor before taking any action.

Material Handling Transportation Internal Movement Lift Trucks, Personnel & Burden Carriers
  • Related Articles

    Alternative Fuel Tax Credit Retroactively Extended for Propane Forklifts

    Video series testifies for propane-powered forklifts

    10 tips to maximize safety—and productivity—when operating with propane forklifts

Recent Articles by DC Velocity Staff

Panama Canal forms deal to optimize vaccine distribution

FedEx Ground leader will retire in July after eight year stay

U.S. Xpress makes “significant investment” in self-driving tech vendor

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • Cold chain giant Lineage Logistics buys its own rail operator

  • Biden names dozens of senior leaders to DOT, including FMCSA and FRA

  • Outlook 2021: What’s in store for logistics supply chain?

  • Cushman & Wakefield Brokers Sale of 170 Acres plus Lease for 1MSF Build-to-Suit for Home Improvement Retailer in Commerce City, CO.

  • Thriving in the long haul: interview with Colin Yankee

Now Playing on DCV-TV

Sick agv demo thumbnail

Optimize Load Handling Tasks with Industrial Mobile Robots

DCV-TV 4: Viewer Contributed
Intelligent sensors detect the presence of goods, check for empty shelves, or the correct alignment on the mobile platform towards the freight. The solutions range from simple detection sensors, thorough measuring devices, and 2D LiDAR sensors.

FEATURED WHITE PAPERS

  • Proven Benefits: A Compendium of Slotting Optimization Success Snapshots

  • Bridging Information Gaps in Dock and Yard Operations

  • How Intelligent Sensor Solutions Turn Data Into Action

  • Order picking Solutions: Understanding Your Options

View More

Subscribe to DC Velocity Magazine

GET YOUR FREE SUBSCRIPTION
  • SUBSCRIBE
  • NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2021. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing