Alternative Fuels Tax Credit

AAA

DEFINITION of 'Alternative Fuels Tax Credit'

A non-refundable tax credit awarded to taxpayers who use non-alcohol alternative fuels that are either sold commercially by the taxpayer or used in the taxpayer's vehicles for business. The alternative fuels tax credit is computed by multiplying the number of gallons of alternative fuel or gas by 50 cents (as of 2008).

INVESTOPEDIA EXPLAINS 'Alternative Fuels Tax Credit'

For the purpose of the credit, there are several types of alternative fuels that qualify, including compressed or liquefied natural gas, liquid petroleum gas, P-series fuels, liquid hydrocarbons and any liquid fuel that is derived from coal. Ethanol, methanol and biodiesel fuels are excluded.

VIDEO

RELATED TERMS
  1. Energy Tax

    A surcharge on fossil fuels such as oil, coal and natural gas. ...
  2. Energy Tax Credit

    An energy tax credit is given to homeowners who make their homes ...
  3. Alcohol Fuels Credit

    One of several general business credits included on the General ...
  4. Black Liquor Tax Credit

    A term coined by the forest-products industry to describe an ...
  5. Alternative Motor Vehicle Credit

    A tax credit given to individuals who purchase vehicles that ...
  6. Filing Status

    A category that defines the type of tax return form an individual ...
Related Articles
  1. Home & Auto

    Getting A Grip On The Cost Of Gas

    Feeling overwhelmed by rising oil prices? We offer some tips that will save you money.
  2. Home & Auto

    Hybrids: Financial Friends Or Foes?

    Forget the planet for a minute - what really matters is whether these vehicles fit your budget.
  3. Taxes

    5 Tax Credits You Shouldn't Miss

    If you're not taking advantage of these deductions, you could be missing out on tax savings.
  4. Taxes

    Give Your Taxes Some Credit

    A few tax credits can greatly increase the amount of money you get back on your return.
  5. Personal Finance

    Five Companies Leading The Green Charge

    Corporations that reduce their environmental footprint anticipate large long-term gains.
  6. Options & Futures

    Spotlight On The Solar Industry

    Before you buy into the hype, learn how the industry works and how to spot the winners.
  7. Taxes

    Which Is Better? Tax Preparer Or Tax Software

    Every taxpayer – and every year – is different, so here are four factors to help you decide whether a tax pro or software is best for you.
  8. Savings

    Top 10 Fastest Growing Industries in the United States

    Six of the ten fastest growing industries are directly related to new residential construction.
  9. Economics

    What's Demand Elasticity?

    Demand elasticity is the measure of how demand changes as other factors change. Demand elasticity is often referred to as price elasticity of demand because price is most often the factor used ...
  10. Budgeting

    4 Secrets You Should Know When Buying Groceries

    With a little foresight, every consumer can find ways to eat healthier without spending much money.

You May Also Like

Hot Definitions
  1. Subsidy

    A benefit given by the government to groups or individuals usually in the form of a cash payment or tax reduction. The subsidy ...
  2. Sunk Cost

    A cost that has already been incurred and thus cannot be recovered. A sunk cost differs from other, future costs that a business ...
  3. Technical Skills

    1. The knowledge and abilities needed to accomplish mathematical, engineering, scientific or computer-related duties, as ...
  4. Prepaid Expense

    A type of asset that arises on a balance sheet as a result of business making payments for goods and services to be received ...
  5. Gordon Growth Model

    A model for determining the intrinsic value of a stock, based on a future series of dividends that grow at a constant rate. ...
  6. Cost Accounting

    A type of accounting process that aims to capture a company's costs of production by assessing the input costs of each step ...
Trading Center