Tax bill contains major propane provisions

January 12, 2011 By    

The tax relief bill that President Obama signed into law in December includes provisions that benefit the propane industry, according to the National Propane Gas Association (NPGA).

■ The propane fuel tax credit (50 cents per gallon), which includes forklift fuel, was extended through Dec. 31, 2011, and made retroactive to 2010.

■ The alternative fuel infrastructure tax credit was extended through Dec. 31, 2011. The percentage of the credit for refueling property reverts back to the pre-stimulus levels of 30 percent with a $30,000 cap.

■ The “non-business energy property” tax credit for propane furnaces, boilers and hot water heaters was extended for 2011 but at pre-stimulus levels of 10 percent and a maximum credit of $500. The law also reinstated the caps for appliances as they were in the original provision. Those caps are $300 for water heaters and $150 for furnaces. Installation costs can be claimed.

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