IRS Issues Guidance on Claim Process for Retroactive Biodiesel Blender Credit

According to PMAA, the IRS has issued special one-time claim procedure (IRS Notice 2020-8) for the $1.00 per gallon biodiesel blender credit, the 50 cents per gallon alternative fuel and alternative fuel mixture credits. The credits were reinstated retroactively for calendar years 2018 and 2019 under the Taxpayer Certainty and Disaster Tax Relief Act of 2019 (the Act).   The IRS is currently revising IRS Form 8849 Schedule 3 to reflect the 2018 and 2019 retroactive claim process. The IRS told PMAA that the revised form (8849 Schedule 3 Rev. Feb. 2020) will be ready before the beginning of the retroactive filing period on February 14, 2020. Claimants should wait for the revised form to file for the retroactive credits. During past retroactive claim periods, the IRS has returned claims filed on outdated forms. FUELIowa will send out a notice once the revised forms are published.

The special procedures allow for one-time credits and payments covering the entire 2018 and 2019 claim period. Congress reauthorized the retroactive biodiesel blenders credit through December 31, 2022 and alternative fuel and the alternative fuel mixture credits through December 31, 2020.

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