• residential propane services

Tax Credits & Exemptions

Tax Credits & Exemptions

Residential Tax Credit

You may be eligible to receive tax credits if you made energy-saving improvements to your home located in the United States in the last year. The IRS considers a home a permanent residence that you lived in during the year, which includes a house, houseboat, mobile home, co-op apartment, condominium, or a manufactured home that conforms to Federal Manufactured Home Construction and Safety Standards.

Benefits from the energy tax credit include lower home energy bills, increased indoor comfort, and reduced air pollution. Tax credits may be available to consumers who install new energy-efficient windows, insulation, doors, roofs, and heating and cooling equipment in their homes. To be eligible, all improvements must be placed in service during the last calendar year in or on the taxpayer's principal residence in the United States.

These tax credits vary from state to state and year to year. Please consult your tax professional to see if your improvements qualify for these credits. You may also visit IRS.gov for more information.

Download your tax exemption form here. Simply fill it out, sign the exemption certificate and return it to your local Blue Star Gas office.

Alternative Fuel Tax Credit

In 2005, Congress enacted the Safe, Accountable, Flexible and Efficient Transportation Equity Act of 2005, otherwise known as the Highway Bill. Among other things, the legislation modestly increased excise taxes on alternative fuels, while at the same time creating a 50-cent-per-gallon credit for alternative fuels, including propane autogas, used in motor vehicles. The ultimate goal of the legislation was to encourage the use of alternative fuels in the United States.

Forklift Tax Credit

In providing further guidance regarding the legislation, the IRS made clear that forklifts fit the definition of an off-highway business motor vehicle and hence fuel used in a forklift is eligible for the tax credit. The IRS indicated that in this instance it is the end user, namely the forklift operator, who is entitled to apply for the credit, not the propane marketer. Forklift operators should be aware that the fuel they use for forklift operation will be eligible for a tax credit of up to 50 cents per gallon.

As a first step, forklift operators need to file with the IRS in order to be registered as an Alternative Fueler. The IRS will then issue a registration number identifying the forklift operator as an Alternative Fueler. After receiving a registration number, the forklift operator can file a claim for the credit at the end of the year. If the alternative fuel excise tax credit exceeds the excise tax liability, the forklift operator may be able to claim an alternative fuel income tax credit (or refund) under certain circumstances.

This information is for educational purposes only and is not intended, nor should be relied upon, as tax advice. We urge motor vehicle operators to consult their own tax advisors regarding claims for credits or refunds. Relevant IRS forms may be viewed and downloaded by going to IRS.gov.

Download your tax exemption form here. Simply fill it out, sign the exemption certificate, and return it to your local Blue Star Gas office.

❱  Please note that the alternative fuel tax credit expired December 31, 2013. As in the past, it is being considered for extension through 2014. Contact your local Autogas Fleet Specialist or Blue Star Gas office for any updates.

California Sales Tax Exemption

In 2001, Governor Davis signed AB426, a bill which provides meaningful tax relief for rural Californians. Blue Star Gas, the Western Propane Gas Association, The California Farm Bureau and other agricultural interests worked long and hard on getting this legislation passed so that you can enjoy substantial tax savings. As your supplier, it is our responsibility to inform and implement the intention of AB426.

Liquified Petroleum Gas (LPG) Propane (Full Sales Tax Exemption)

  • Household Use: Blue Star Gas delivers propane to a qualified residence for household use. The residence must be a primary residence (not a secondary or vacation home) and the supply tank must be greater than 30 gallons.
  • Agricultural Use: Blue Star Gas sells propane to a qualified customer for use in producing and harvesting agricultural products.

Download your tax exemption form here. Simply fill it out, sign the exemption certificate, and return it to your local Blue Star Gas office.

Farm Equipment & Machinery (Partial Sales Tax Exemption)

Additional tax relief can be enjoyed by qualified persons engaged in the business of producing and harvesting agricultural products. These qualified purchases are for farm equipment, machinery, components, appurtenances, and repair or replacement parts. Such items include tanks, valves, propane carburetors, hoses, fittings, pumps, meters, etc. New or used parts apply, as well as leases on tanks and equipment.

Please contact your local Blue Star Gas office or visit the California Board of Equalization website for more information.