July 27, 2020
In Brief
In this issue of the  Monday Morning Messenger , TPGA just wants to say we missed everyone this past weekend with what would've been the 2020 Crossroads Propane Expo & Conference. Read below for our plans for next year.

Also, this morning, the Texas Propane Gas Association (TPGA) covers part 2 on filing alternative fuel tax credit claims and outlines how to claim the 2020 credits.

While we are on the subject of propane motor fuel, TPGA would like to bring your attention to a straight forward propane vehicle incentive program offered throughout the state of Texas that some of members have been successful in securing.

Lastly, TPGA reminds members of a member perk and how that member perk can be used to help with federal and state regulation compliance.
In this issue

  • In Brief
  • Crossroads Propane
Expo & Conference
  • Claim 2020 Tax Credits
  • Statewide Incentive
  • Emergency Response Number Discount
  • Quick Links
Crossroads Propane Expo & Conference
TPGA missed seeing everyone this past weekend with what would have been our Annual Convention, the 2020 Crossroads Propane Expo & Conference in Au stin, TX if not canceled by order of the City of Austin due to the pandemic.

TPGA is thankful to our members, exhibitors, sponsors,
supporters and friends and we look forward to seeing you in 2021.

SAVE THE DATE:
August 12-14, 2021
2021 Crossroads Propane
Expo & Conference
Corpus Christi, TX
Filing 2020 Excise Taxes
& Claiming 2020 Tax Credit
At the end of 2019, not only were the alternative fuel tax credits renewed retroactively for 2018 and 2019, but they were also renewed prospectively for 2020 .

Overview & Background
As a reminder, the IRS has reduced the propane excise filer tax burden based on energy content. As a result, they created a formula for a gas gallon equivalency.

IRS estimates that 1 gallon of gasoline is equivalent to 1.353 gallons of propane so 10,000 gallons of LPG would only equal 7,391 GGE gallons for tax reporting purposes.

For example, if you sold 10,000 gallons of propane, due to reduced energy content in propane, you are only liable to pay taxes on 7,391 gallons of propane, but also you can only claim tax credits on 7,391 gallons.

Excise Tax. Here is snapshot from Form 720 with the formula.
Click here to download most up to date Form 720.Filing the excise tax you will still tax yourself at .183 just with reduced gallons.

Tax Credits. The alternative fuel credits are extended for fuel sold or used in 2020, so line 13 on Page 7 of Form 720 (rev. 04/2020)
is restored to Form 720, Schedule C.

Example from IRS - Tax Credit Claim. 10,000 gallons of LPG ÷ 1.353 gallons = 7,391 GGE x $0.50 = $3,695.50 claim amount

How to claim the credit. Any alternative fuel credit must first be claimed on Form 720, Schedule C, to reduce your section 4041 taxable fuel liability for alternative fuel and reported on Form 720. Any excess credit may be claimed on Form 720 Schedule C; Schedule 3 (Form 8849); or Form 4136.

More information excise tax & tax credit filing can be found in the IRS Instructions 720, click here.

Retroactive tax credits. Also, don't forget to file your claims for the retroactive alternative fuel tax credits by August 11, 2020. This retroactive claim deadline is in federal statute and cannot be extended without a Congressional Act, which is unlikely.

First time filers. If you are first time filer of tax credits then ensure you are registered as an “alternative fueler” in order to claim the Alternative Fuel Tax Credit. Claimants can register using IRS Form 637, Application for Registration (For Certain Excise Tax Activities) (registration code “AL”).

Filing. Due to COVD-19 and limited staffing, the IRS recommends E-filing.

For help completing the tax forms or specific questions on the completing tax forms, please contact a qualified CPA or a tax professional.
Pictured: TPGA member, Doyle Fevig. Fevig Oil.
$5,000 Per Propane Vehicle Available Statewide
Did you happen to read about the Texas Light-Duty Motor Vehicle Purchase or Lease Incentive Program (LDPLIP) in the July issue of Texas Propane magazine?

It is first come, first serve statewide incentive program offered through the Texas Commission of Environmental Quality through the end of 2020.

Texans who purchase a new propane vehicle or convert your gasoline vehicle under 10,000 GVWR within the first 500 miles using an EPA certified conversion kit and can receive $5,000 per instance.

It doesn't matter where you are in the Lone Star State.
No replacement is required. No destruction.
It can even be bifuel.

Over $5 million dollars is left for propane and natural gas.

Need help finding a compliant kit?
TPGA has members that manufacture and distribute EPA certified kits as well as propane vehicles.

Need help completing the forms? The Propane Council of Texas has you covered. ProCOT has contracted with a grant specialist that can walk you through the incentive forms and incentive process.

Contact (800) 325-7427 for help finding a conversion kit
or incentive assistance.
Member Perk: Emergency Response Number
For over a decade, the Texas Propane Gas Association (TPGA) has partnered with Professional Emergency Resource Services (PERS) to provide our members with a discounted emergency number.

Started by a former propane marketer in 1989, PERS has provided an emergency response telephone number service nationwide; propane marketers, petroleum marketers/jobbers, welding/specialty gas distributors, chemical manufacturers, and many other types of companies, which ship or transport hazardous materials.
PERS subscribers can use the PERS emergency response number on:
• Hazardous materials shipping papers to comply with US DOT requirements;
• Safety Data Sheets (SDS) to comply with OSHA requirements;
• Hazard Communication Labels to comply with OSHA requirements;
• Posting at registered addresses/facilities to comply with
the RRC LP Gas Safety Rules;
• Tier II reports to comply with TCEQ

The PERS response center is staffed around the clock with personnel, ready to provide assistance to our customers and first responders.

You must be paid subscriber to use and post the PERS emergency response number.
TPGA Member PERS subscription
$150 principal/home office
$50 for each additional branch or storage site
vs.
Non-Member PERS subscription
$370 principal/home office
$75 for each additional branch or storage site

Pricing subject to change.

To secure a discounted PERS Emergency Response Number, please contact PERS at 800-728-2482 and mention you are a Texas Propane Gas Association member.
Quick Links
Order Your ProCOT
Propane Safety Tip & Recipe Wall Calendar Orders
Deadline is August 7, 2020
Propane Service Corporation
New LP Gas Safety Rulebooks
New editions of
NFPA 54 ('18) & NFPA 58 ('17)
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