Congress recently enacted legislation providing a 50˘ per gallon tax credit for companies using propane in forklifts and airport tugs. Although forklifts are normally exempt at the time of purchase from the federal excise tax on propane, they are still eligible to claim the full 50˘ per gallon credit for business use.

This credit could be of significant benefit to a warehouse or manufacturing operation using propane-powered forklifts. As an example, a warehouse operating multiple forklifts running five to eight hours per day, would consume thousands of gallons of propane annually. At a 50˘ per gallon tax credit, the savings could add up quickly. 

This credit is applicable for propane usage from October 1, 2006 through September 30, 2009, and is claimed on the income tax return for that year.  As an added benefit, we can amend for prior year returns to capture the credit.

If you think you may qualify for this tax credit, please contact Cindy Buie at (404) 835-1914 or cindy.buie@aghllc.com