IRS publishes tax code for biodiesel tax credits

In Washington, the IRS has published a notice that informs claimants about the federal income tax treatment of credits under § 6426(c) and (d) of the Internal Revenue Code that are paid in cash under the one-time claim submission process of section 160(e) of the Tax Increase Prevention Act of 2014 (Act), Pub. L. No. 113-295, 128 Stat. 4023, and implemented by Notice 2015-3, 2015-6 I.R.B. 583. Specifically, a claimant must reduce its income tax deduction for (or cost of goods sold deduction attributable to) § 4081 excise taxes for each calendar quarter during 2014 by the amount of the § 6426(c) credit for a biodiesel mixture sold or used during that calendar quarter. Similarly, a claimant must reduce its income tax deduction for (or cost of goods sold deduction attributable to) § 4041 excise taxes for each calendar quarter during 2014 by amount of the § 6426(d) credit for alternative fuel sold or used during that calendar quarter.

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