The IRS has provided a process for eligible taxpayers to make a one-time claim for the credits and payments allowed under Code Secs. 6426(c), 6426(d) and 6427(e) for biodiesel (including renewable diesel) mixtures and alternative fuel sold or used during calendar years 2018 and 2019. These credits had expired after 2017 but were retroactively reinstated by the Further Consolidated Appropriations Act, 2020 ( P.L. 116-94). The IRS has also provided instructions on how a claimant may offset its Code Sec. 4081 liability with the Code Sec. 6426(e) alternative fuel mixture credit for 2018 and 2019. That credit, which lapsed at the close of 2017, was also retroactively reinstated.
The 180-day period for submission of claims for the biodiesel and alternative fuel incentives begins on February 14, 2020. As a result, all 2018-2019 claims for biodiesel and alternative fuel incentives must be filed on or before August 11, 2020.
The claim period for Code Sec. 6426(e) alternative fuel mixture credits that offset Code Sec. 4081 liability begins on February 14, 2020. Generally, claims for the alternative fuel mixture credit must be made within three years from the time the return was filed or two years from the time the tax was paid, whichever is later.