Business taxpayers may be allowed to expense the purchase or lease of business equipment according to Internal Revenue Code 179 (IRS 179). Customers who purchase a new or pre-owned Butler System, van, cube van or truck may be entitled to deduct the entire cost of the Butler System and vehicle as an expense in the first year of ownership. *
Information regarding the Internal Revenue IRC 179 may also be found on the Internal Revenue website IRS.gov.
Fuel Consumption and Tax Savings
Gas and Diesel Fueled Engines
There is some important information regarding fuel consumption and possible tax savings that you may want to consider as a Butler System owner or when purchasing a Butler System and vehicle.
Consumption: Fuel consumption with the Butler System in operation is estimated to be 1-1/4 to 1-3/4 gallons of fuel per hour. Consumption may vary from these estimates due to the quality of fuel, the blending of fuel in various regions of the country, summer and winter fuel blends, presence and/or volume of oxygenates and additives, fuel temperatures, octane/cetane ratings, altitude, climate, ambient temperature, condition of the vehicle's engine and the general condition of the Butler System.
Fuel economy estimates for commercial vans and trucks are not provided by the manufacturers. However, customers who have purchased 2010 and newer models are reporting considerable improvements in fuel consumption over previous model year(s). Fuel consumption is dependent, in addition to the variables listed above, on the payload, driving conditions, terrain and driving habits of the operator.
Taxes: It is our understanding that the cost of fuel is a 100% tax deductible expense when a van or truck is used for business. Also, a federal fuel tax credit of $.183 per gallon for gasoline and $.243 for diesel fuel (refer to IRS Form 8849, Schedule 1) may be claimed when a commercial vehicle is used off-highway for business, such as, when the Butler System is in operation. A state fuel tax credit/deduction may also be claimed, in most states, when the vehicle is used off-highway for business.
Information on federal fuel tax credits and refunds can be obtained from IRS Publication 510. Consult your state taxing authority for information regarding your particular state's relevant refunds, credits or deductions.*