The House this week passed a tax extenders package that includes an extension of the $0.50/gallon alternative fuel excise tax credit, along with other measures important to the clean-fuel transportation industry.
The bill will next move to the Senate – where it is expected to pass – and then to the president’s desk for signature.
The excise tax credit covers fuels including compressed natural gas and liquefied natural gas (both naturally occurring CNG and LNG, and that derived from biomass), propane autogas, and liquefied hydrogen.
Also included in the extenders package is an extension of the alternative fuel infrastructure tax credit. This measure provides a tax credit of up to 30% of the cost (not exceeding $30,000) of installing refueling equipment for CNG/LNG/RNG, propane autogas, hydrogen, E85 and minimum B20 biodiesel. Electric vehicle charging infrastructure is also eligible for the tax credit.
All of these incentives expired at the end of 2017. The House bill not only extends the credits through 2020, but it also enables the application of the credits retroactively for calendar years 2018 and 2019.
“This legislation provides the added needed incentive for fleets of all sizes – public and private – to transition to clean natural gas transportation fuel,” says NGVAmerica President Daniel Gage.
“We could not have accomplished this extension without assistance from our key champions in Congress,” he adds. “Leaders such as Senator Richard Burr, Reps. John Larson, Lizzie Fletcher, Markwayne Mullin and many others were crucial in reaching out to House and Senate leadership with their support and in making the case for clean transportation fuels.”