Residential Tax Credit

You may be able to take tax credits if you made energy saving improvements to your home located in the United States in 2006. The IRS considers a home as a permanent residence that you lived in during 2006 and includes a house, houseboat, mobile home, cooperative apartment, condominium, and a manufactured home that conforms to Federal Manufactured Home Construction and Safety Standards.

Forklift Tax Credit

In 2005, Congress enacted the Safe, Accountable, Flexible and Efficient Transportation Equity Act of 2005, otherwise known as the Highway Bill (P.L. 109-59). Among other things, the legislation modestly increased excise taxes on alternative fuels while at the same time creating a 50 cent/gallon credit for alternative fuels, including propane, used in motor vehicles. These provisions went into effect on October 1, 2006. The ultimate goal of the legislation was to encourage the use of alternative fuels. Moreover, it should be emphasized that sales of propane for use in forklifts remain exempt from the federal excise tax on motor fuels by way of a credit available to the ultimate purchaser. In providing further guidance regarding the legislation, the Internal Revenue Service (IRS) made clear that forklifts fit the definition of an off-highway business motor vehicle and hence fuel used in a forklift is eligible for the tax credit. The IRS indicated that in this instance it is the end user, namely the forklift operator, who is entitled to apply for the credit, not the propane marketer. Forklift operators should be aware that the fuel they use for forklift operation will be eligible for a tax credit of up to 50 cent/gallon.

Materials are provided for information only, we cannot provide tax advice and suggest you contact a tax professional concerning your specific situation.