What is the OSLT? The oil spill liability tax (OSLT) expired on December 31, 2018, and therefore was not required for the 2019 calendar year. Effective January 1, 2020, the law reinstated the oil spill excise tax imposed on crude oil and imported petroleum products. The cost of the OSLT is calculated at a rate of $0.09 per barrel (approximately $0.00214 per gallon) of crude oil products (including natural gasoline used as denaturant). How is the OSLT usually filed? This excise tax is filed quarterly with IRS Forms 6627 and 720, but deposits are required for each semimonthly period in which the tax liability is incurred. The amount of this deposit must not be less than 95% of the amount of net tax liability incurred during the Read More...
Archives for January 2020
Refundable Biodiesel Blender Credits Extended
Under the Further Consolidated Appropriations Act of 2020, the refundable biodiesel blender credits were extended. How is the refundable biodiesel blender credit usually filed? A one-time claim can be made for the $1.00/gallon refund on biodiesel mixture gallons for 2018 and 2019. Total gallons for these two years need to be combined and reported on one Form 8849, Claim for Refund of Excise Taxes. Form 8849 Schedule 3, Certain Fuel Mixtures and the Alternative Fuel Credit, must be included with the submission with appropriate gallons reported on Line 2. It should be noted that the refund received from these credits is not-taxable. You can find additional rules and information on the IRS website here. Now What? The 180-day claim period Read More...
USDA Advanced Biofuel Payment Program
Jan. 13, 2020 The USDA Advanced Biofuel Payment Program is now open for Fiscal Year 2019 and 2020. Its goal is to increase US energy independence by increasing the supply of renewable energy in the public sector. Applications must be received by the individual state offices by 4:30pm local time by February 18, 2020 for both FY 2019 + 2020. This means time is short! The USDA is strongly advising applicants to conduct research and avail themselves of training before submitting their applications. Christianson PLLP can assist all types of biofuel producers with their applications and requests for quarterly payments. Applications & Eligibility Any entity that produces and sells advanced biofuel in its final form in the US is eligible Read More...