Motor Fuels Tax Minute, Episode 41: Fuel Tax Credits

In this week’s episode of Motor Fuels Tax Minute, our hosts give an overview of fuel tax credits.

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Detailed Description of Weaver’s Motor Fuels Tax Minute, Episode 41

00:00:00
Kelly: Hello everyone. This is our Motor Fuels Tax Minute where we talk all things motor fuel tax. And we are going a little bit back to the basics again. We’re talking about some fuel tax credits.

Emilda, take it away.

00:00:13
Emilda: Well Kelly, one would argue that this is not back to the basics.

00:00:18
Kelly: That’s fair.

00:00:20
Emilda: So yes, it’s a great topic. A lot of companies don’t realize that they can receive a refund for taxes paid on fuel used in off-highway equipment or machinery, and a couple of companies that may want to consider that are companies that may be using fuel for their equipment to propel that equipment. Sometimes we think about cement companies or maybe farming equipment or companies that may be using other types of fuel to propel or consume that fuel.

So, Kelly, there’s a lot of benefits here. I think this is a very gray area at times and there are definitely requirements that the states are requesting that you provide proof for that claim. So, it’s an avenue that we love to dig into a little bit deeper. But, it’s a pretty big topic.

00:01:17
Kelly: Yeah, definitely not back to the basics.

00:01:20
Leanne: Yeah, definitely not. Lots of good information there.

00:01:21
Kelly: Yeah, and with Louisiana, you actually have to do a lot of planning ahead of time, because you need to get it authorized by the state prior to being used off-road. And if you don’t have that planning ahead of time, you will be denied the credit or the refund. So great topic.

00:01:43
Emilda: And we’re just touching the layer here, the very top layer. We have state credits, there’s federal credits as well for off-road use. I think there’s a lot to explore here, so if our clients or anyone out there who needs assistance with these claims, you know, feel free to reach out to us. We’re always happy to help out.

>00:02:07
Leanne: So true. Thank you, Emilda. I think we’ll probably have to revisit this topic. We did it a little bit last time with that Florida case with the motor fuel refund. You get your refund, but then you’re subject to the sales tax. Kelly just mentioned Louisiana as well. So, Emilda will need to dig into this more on some future episodes.

That’s this week’s Motor Fuels Tax Minute. We’ll be back again. Thank you.