On January 2 of this year, President Obama signed the American Taxpayer Relief Act of 2012 into law. The legislation is significant for the alternative fuel industry: the new law extends several alternative fuel tax credits which had expired on December 31, 2011, changing the tax term “cellulosic biofuel” to “second generation biofuel” (a change which embraces biofuels from cultivated algae, cyanobacteria, and lemna), and extends the Qualified Plug-In Electric Drive Motor Vehicle Tax Credit.

The legislation was designed to avert what has been referred to as the fiscal cliff, to prevent scheduled income tax rate increases, and to postpone the sequestration process (an automatic spending cut that is applied if Congress does not enact a new budget resolution).

The American Taxpayer Relief Act extends several alternative fuel tax credits and extends the “Qualified Plug-In Electric Drive Motor Vehicle Tax Credit.” Credit: NAFTC.

These changes are listed under Title IV of the American Taxpayer Relief Act of 2012, entitled “Energy Tax Extenders.”
Sections of the legislation which are directly related to the alternative fuel industry are listed below:
• Sec. 402: Extension of credit for alternative fuel vehicle refueling property.
• Sec. 403: Extension of credit for 2- or 3-wheeled plug-in electric vehicles.
• Sec. 404: Extension and modification of cellulosic biofuel producer credit.
• Sec. 405: Extension of incentives for biodiesel and renewable diesel.
• Sec. 407: Extension and modification of credits with respect to facilities producing
energy from certain renewable resources.
• Sec. 410: Extension and modification of special allowance for cellulosic biofuel plant
• Sec. 412: Extension of alternative fuels excise tax credits.

For the full legislation, please click here.

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