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May 17, 2023
2023-0894

Fuel blender claiming alcohol fuel tax credits must reduce income by COGS incurred or paid, Tax Court holds

In a T.C. Opinion (Growmark Inc., et al. v. Commissioner, 160 T.C. No. 11, May 16, 2023), the Tax Court has held that a fuel blender may claim tax credits under IRC Section 6426(b) and (c) for fuel mixtures the company blended and reduce its taxable income by its cost of goods sold (COGS) incurred or paid — not by its gross excise tax liability, unreduced by tax credits received.

Published by NTD’s Tax Technical Knowledge Services group; Carolyn Wright, legal editor

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Growmark v CIR

 

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