The IRS allows a tax credit to trucking companies based on the number of undyed diesel fuel gallons purchased in a given year. This specifically helps individuals and companies who transport refrigerated goods. The credit is $.244 per gallon of off-highway use diesel for gallons purchased before October 1, 2005. The credit is $.243 per gallon for gallons purchased after September 30, 2005.
This is a refundable credit, which means that you can get the credit refunded to you even if you didn’t owe taxes. This can add up to HUGE tax savings for refrigerated truckers. For example, if you purchased 10,000 gallons of undyed diesel to use in your refrigerated trailer in 2006, you would receive a credit of $2,430. This is a dollar-for-dollar reduction of your tax liability! What if you don’t have a tax liability? The government will add your credit to your tax refund.
If you would like more information, please call Brady Pipkin at 501.753-9700 or e-mail Brady at brady.pipkin@bellancompany.net.
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