Motor Fuels Tax Minute, Episode 11

Provisions in the Inflation Reduction Act are the topics for this week’s Motor Fuels Tax Minute. Join our hosts for an overview related to biodiesel, renewable diesel and alternative fuels.


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Detailed Transcription of Weaver’s Motor Fuels Tax Minute, Episode 11


Emilda: Welcome to Weaver's Motor Fuels Tax Minute, where we talk all things motor fuels. This week we're talking about provisions in the Inflation Reduction Act related to biodiesel, renewable diesel and alternative fuel.

The statute extended the blender credits for biodiesel, renewable diesel and alternative fuel through the end of 2024, with the alternative fuel credits being reinstated retroactively as they had previously expired at the end of 2021. The statute also retroactively reinstated the second-generation biofuel producer credit.


Emilda: To assist taxpayers in claiming the reinstated credits, the IRS has issued guidance in IRS Notice 2022-39. For taxpayers claiming the alternative fuel credit, a one-time claim must be made on IRS Form 8849 Schedule 3. There is a 180-day period to file this one claim from October 13, 2022, through April 11, 2023. Claims received prior to October 13, 2022, will be treated as received on October 13, 2022. Claims can be filed electronically or via mail. Claims will be paid within a 60-day period.


Leanne: However, the process for claiming the alternative fuel mixture credit is a little bit different, as this credit can only be offset against federal excise tax liability. Claims for the first two quarters of 2022 must be filed via an amended quarterly federal excise tax return, Form 720X. Claims must be filed within three years from the date the original return was filed or two years from the date the tax was paid, whichever is later. Claims for the third quarter of 2022 should be claimed on Form 720 for the third quarter, which is due later this month.


Emilda: Finally, the notice notes that claims for reinstated second generation biofuel credits should be claimed by attaching the Form 6478 to its income tax return.

That is this week's Motor Fuels Tax Minute. Stay tuned next week when we'll be discussing the sustainable aviation fuel tax credit that was enacted as part of the Inflation Reduction Act.

Thank you.


Leanne: Thank you.

Weaver's Motor Fuels Tax Minute

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Leanne Sobel

Leanne Sobel

Director, Motor Fuels and Excise Tax Services


Leanne Sobel, J.D., has over 15 years of experience in legal tax matters. Her career focus includes federal and state tax and…

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