Alternative fuel property credit

Credit amount and structure

The credit equals 25% of the cost of purchasing, constructing and installing eligible property.

The credit must be claimed in three equal annual installments beginning within the tax year the property is placed in service.

If, during one of the years in which a credit installment accrues, property used for distributing, dispensing or storing renewable fuel is disposed of or taken out of service and is not replaced, the credit expires and the taxpayer may not claim any remaining installments.

Eligible taxpayers

For purposes of this credit, “taxpayer” includes:

• Sole proprietors
• Partnerships
• Corporations of any classification
• Limited liability companies
• Associations taxable as business entities

The term also includes the State and any agency, instrumentality, authority or political subdivision, including municipalities.

Carryforward and limitations

General provisions related to this credit include:

• Any unused portion of the unexpired credit may be carried forward for up to 10 tax years.
• The credit is claimed on Form TC-59, titled “Alternative Fuel Property Credit.”
• A taxpayer who claims any other credit for the same costs of purchasing, constructing and installing property at the facility may not claim this credit for those same costs.
• The State or any agency, instrumentality, authority or political subdivision, including municipalities, may transfer the credit. If transferred, the transferring entity must notify the Department of Revenue.