The New York State Department of Taxation and Finance has issued a memorandum announcing the extension of current tax exemptions for alternative fuels.
Specifically, the memorandum offers guidance on the five-year extension for the alternative fuels E85, compressed natural gas (CNG), hydrogen and B20 and for natural gas that will be converted into CNG for use or consumption in motor vehicles. Liquefied natural gas (LNG) is considered CNG, and the same exemptions apply.
The technical paper states that the exemptions were due to expire on Aug. 31 but will now be extended through Aug. 31, 2021.
As written in the memorandum, Part U of Chapter 60 of the Laws of 2016 extends the following through Aug. 31, 2021:
- The full exemptions from the excise tax, the petroleum business tax and the prepaid sales tax for E85 fuel that is delivered to the storage tank of a filling station to be dispensed directly into a motor vehicle for use in the operation of the vehicle;
- The full exemptions from the excise tax and the petroleum business tax for CNG and hydrogen;
- The full exemption from the state and local sales and use taxes for retail sales of E85 fuel, CNG, hydrogen and natural gas purchased and converted into CNG for use or consumption directly and exclusively in the engine of a motor vehicle;
- The partial (20%) exemption from the excise tax, the petroleum business tax, and the state and local sales and use taxes for B20 fuel; and
- The full exemptions from the prepaid sales tax for CNG and hydrogen.