A federal tax credit/payment of 50 cents per gallon of alternative fuel in an alternative fuel mixture is currently available to taxpayers that produce alternative fuel mixtures for sale or use in its trade or business. A qualified alternative fuel mixture is a mixture of alternative fuel, such as Griffin fats and oils, and a minimum .1% (by volume) of taxable fuel. Taxable fuels are gasoline, diesel and kerosene.

To qualify for the credit, each producer must register with the Internal Revenue Service using Form 637 Application for Registration . The activity letter required on Part II of Form 637 for an alternative fuel mixture producer is AM.

The IRS will process the registration and most likely conduct a site visit. It can take several weeks for the IRS to complete their review. Upon completion the IRS will issue a Letter of Registration containing your registration number.

The credit is generally claimed on either Form 720 Quarterly Excise Tax Return as a credit against any other fuel tax liability or, for taxpayers without a tax liability, Form 8849 Claim for Refund of Excise Taxes . Form 8849 can be filed as often as weekly to request a refund payment. The IRS generally issues a check within 30 days of filing Form 8849.

See IRS Notice 2006-92 for further guidance. This information does not constitute legal or tax advice. Please consult your tax advisor for further details.