The House and Senate passed legislation Tuesday designed to avert the so-called fiscal cliff, a combination of tax increases for individuals and cuts to government spending. The legislation overwhelmingly passed the Senate, 89-8, and passed the House 257-167, with 85 Republicans voting in favor of the legislation.
The legislation includes extensions of some energy tax credits that are important to NATSO members.
- $1 Per Gallon Blender's Credit for Biodiesel and Renewable Diesel, which expired Dec. 31, 2011, was extended in the legislation. It will go into effect retroactively for all of 2012 and extend to the end of 2013.
- Alternative Fuel Vehicle Refueling Property Creditwas extended through 2013. This tax credit allows a 30 percent or $30,000 tax credit, whichever is smaller, to be claimed for installation of refueling property that dispenses at least 85 percent ethanol, natural gas, CNG, LNG, liquefied petroleum gas or hydrogen. It also would apply to equipment dispensing mixtures that are at least 20 percent biodiesel. Finally, it also applies to electricity.
The IRS will issue guidelines on how to claim the biodiesel credit for the tax year 2012 in the coming weeks. NATSO will share that information when it is becomes available.
Other provisions of interest include:
- The payroll tax cut that has been in effect for the last two years has been repealed. The rate for 2013 will increase by two points, to 6.2 percent, and the Social Security base wage limit is now $113,700. The IRS released new withholding tables for employers for 2013.
- The $5.12 million per person estate tax exemption has been made permanent and indexed to inflation, though the rate is now 40 percent, up from 35 percent in 2012.
If you have any questions, please contact Holly Alfano, Vice President of Government Affairs, email@example.com.
This article originally ran in NATSO News Weekly (NNW), NATSO's member only weekly electronic newsletter. NNW is packed with the latest updates on government and business issues affecting the truckstop and travel plaza industry.
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