Alcohol Farm Fuel Use Tax Act of 1980

Alcohol Farm Fuel Use Tax Act of 1980 - Amends the Internal Revenue Code to allow a taxpayer engaged in the trade or business of farming an income tax credit in an amount equal to the annual expenditures (not to exceed $2,000) for conversion of qualified farm equipment to the fuel use of either: (1) pure alcohol; or (2) a mixture not less than 20 percent of which is alcohol. Requires that such equipment use an internal combustion engine for power and that it be used on a farm in the United States.

Provides that the increase in the basis of such farm equipment which would otherwise result from such an expenditure shall be reduced by the amount of credit so allowed.