Loading the player...

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).

BREAKING DOWN '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.

RELATED TERMS
  1. Alternative Motor Vehicle Credit

    A tax credit given to individuals who purchase vehicles that ...
  2. Alcohol Fuels Credit

    One of several general business credits included on the General ...
  3. Fuel Tax Credit

    A federal subsidy that allows businesses to reduce their taxable ...
  4. New Alternative Transportation ...

    A bipartisan proposal introduced in April, 2011 that amends the ...
  5. Non-Refundable Tax Credit

    A tax credit that can't reduce the amount of tax owed to less ...
  6. Tax Benefit

    A tax benefit is an allowable deduction on a tax return intended ...
Related Articles
  1. Taxes

    Give Your Taxes Some Credit

    A few tax credits can greatly increase the amount of money you get back on your return.
  2. Investing

    Will Raising Fuel Efficiency Standards Kill the Oil Industry?

    Diminishing returns to fuel efficiency means the oil industry is safe in the medium and long term.
  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

    Start Over With The IRS

    If you're struggling to pay back taxes, try a fresh start with the IRS. They really can help.
  5. Investing

    The Biofuels Debate Heats Up

    Interest in these new energy sources is growing. Should you buy in?
  6. Investing

    Why Low Fuel Prices Aren't Enough for EU Airlines

    Low jet fuel prices alone are not enough to guarantee success in Europe’s fragmented airline market.
  7. Taxes

    What's IRS Form 1040 For?

    Most U.S. taxpayers will be familiar with the 1040. By the end of filling it out, you'll know how much tax you owe, or what your refund is.
  8. Taxes

    IRS Asset Seizures: Could It Happen To You?

    If you can't pay your taxes, know that the IRS has many avenues for collecting what you owe.
  9. Investing

    Getting A Grip On The Cost Of Gas

    Feeling overwhelmed by rising oil prices? We offer some tips that will save you money.
  10. Taxes

    New Tax Rules Target The Top Tax Bracket

    The American Taxpayer Relief Act brings about new tax rules for the wealthy that people such as Warren Buffett have been calling for over the last few years.
RELATED FAQS
  1. To what extent will changing fuel costs affect the profitability of the airline industry?

    Learn how changing fuel costs affect the profitability of the airline industry and why airline operators do not immediately ... Read Answer >>
  2. What’s the difference between IRS Forms 1040 and 1040EZ?

    Though very similar, the differences between the 1040 and 1040EZ Forms are significant when it comes to filing your tax return. ... Read Answer >>
  3. How do I sign up for the saver's tax credit?

    The saver's tax credit is a non-refundable tax credit available to eligible taxpayers in the U.S. who make contributions ... Read Answer >>
  4. What are the major expenses that affect companies in the airline industry?

    Discover the major expenses that airlines must pay. The two largest are labor costs and fuel costs. Fuel costs are the biggest ... Read Answer >>
  5. Are progressive taxes ever more unfair that flat taxes?

    Learn more about progressive taxes and flat taxes. Find out why progressive taxes may be unfair for many taxpayers and why ... Read Answer >>
Hot Definitions
  1. Cash Flow

    The net amount of cash and cash-equivalents moving into and out of a business. Positive cash flow indicates that a company's ...
  2. PLUS Loan

    A low-cost student loan offered to parents of students currently enrolled in post-secondary education. With a PLUS Loan, ...
  3. Graduate Record Examination - GRE

    A standardized exam used to measure one's aptitude for abstract thinking in the areas of analytical writing, mathematics ...
  4. Graduate Management Admission Test - GMAT

    A standardized test intended to measure a test taker's aptitude in mathematics and the English language. The GMAT is most ...
  5. Magna Cum Laude

    An academic level of distinction used by educational institutions to signify an academic degree which was received "with ...
  6. Cover Letter

    A written document submitted with a job application explaining the applicant's credentials and interest in the open position. ...
Trading Center