Renewable Fuels, Individual Tax, and Business Tax
Tax laws and regulations are subject to change. Information presented here reflects our current understanding at time of post. For additional information and inquiries, please contact us. We are available to provide assistance!
Developments in Renewable Fuels
MN Sustainable Aviation Fuel Credit (SAF) guidance was released on November 22, 2023. The credit is $1.50 per gallon of SAF — available for fuel sold and used between June 30, 2024, and July 1, 2030. To qualify, the fuel must be produced or blended in Minnesota and used as fuel in an aircraft departing from a Minnesota airport. The taxpayer claiming the credit must be the producer or blender of the fuel. According to the definition provided in Minnesota statutes section 41A.15, subdivision 2e, the fuel must be derived from biomass, excluding palm fatty acid distillates, and must reduce at least 50% of lifecycle greenhouse gas emissions. To claim the credit, the taxpayer must attach to their tax return the credit certificate obtained within 2 months of the tax year end from the Minnesota Department of Agriculture.
The public hearing on Proposed Regulations around Prevailing Wage and Apprenticeship (PWA) was held on November 21, 2023. Business speakers argued the rules create too many burdens of documentation requirements and penalize taxpayers seeking a credit under “good faith.” Labor group representatives argued more front-end monitoring is required, including a prefiling registration system that gives states and citizens visibility on who plans to seek the increased credits before they’re applied for. Contact us for further details.
The Treasury released proposed REG-132569-17 on definitions and rules about the Energy Credit/Investment Tax Credit (ITC). A detailed summary of the proposed regulations is expected to be available soon. Contact us for further details.
Developments in Individual Tax
Only a handful of vehicles qualify for the new EV tax credit, due to stringent battery mineral sourcing requirements. Remember to check the IRS’s website to see if a vehicle purchased in 2023 or later qualifies.
Developments in Business Tax
IRS has delayed the enactment of the $600 1099-K filing threshold to 2024. The current reporting threshold for users of apps like PayPal, Cash App, and Venmo is $20,000 and 200 transactions.
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