FUEL TAX REFUND CHANGES TO TAKE EFFECT AUG. 6
MONTGOMERY, Ala. -- Alabama farmers transporting biomass to facilities for the purpose of generating electricity may now receive a refund of up to $1,000 for their agricultural fuel, thanks to a change in legislation passed during the regular session of the Alabama Legislature. The change will be for the 2008 calendar year.
The change, which becomes effective Aug. 6, now extends the fuel tax credit to include all alternative and other motor fuels for certain off-farm uses -- not just gasoline used on the farm in tractors and other farm machinery.
"With energy prices so high, farmers are looking for energy sources other than gasoline," said Alabama Farmers Federation President Jerry A. Newby. "This legislation provides an expanded opportunity that will give our farmers more options while reducing expenses they may incur."
The changes, authored by Rep. Gregory Wren and Sen. Wendell Mitchell, provide for a refund of 11 cents per gallon from state gasoline and motor fuel excise taxes of up to $1,000 annually on fuel used to transport biomass from a farm to the generating facility. It also expands current refund provisions for gasoline used on the farm for agricultural purposes to apply to all motor fuel excise taxes levied by the state.
According to Steve DuBose with the Department of Revenue, the change means farmers will have two claim forms for the next tax season -- one for a claim under the "old" guidelines for gasoline and on-farm use from Jan. 1, 2008 through Aug. 5, 2008, and one for a claim under the new provisions for Aug. 6-Dec. 31, 2008. The January-March claim period remains unchanged.
DuBose said farmers who have previously filed claims will be mailed forms.
For more information or questions, call DuBose at (334) 242-9608 or email Steve.Dubose@revenue.alabama.gov