After championing the inclusion of an extension of the alternative fuels tax credit (AFTC) and a COVID-19 stimulus package last month, NGVAmerica, a national organization dedicated to developing natural gas and biomethane markets, has released updated guidance on filing for the federal tax credit.
The AFTC – a $0.50 fuel credit/payment for the use of natural gas as a transportation fuel – and the alternative fuel vehicle refueling property credit – a 30%/$30,000 investment tax credit for alternative vehicle refueling property – have been extended through Dec. 31, 2021.
With this credit, U.S. transit agencies can continue to invest in cleaner, commercially available and proven natural gas buses without reducing service or increasing fares; school districts can provide exhaust-free rides to school by replacing their dirty legacy fleets, and freight haulers and package delivery companies can afford to replace aging diesel trucks with heavy-duty trucks that run entirely on natural gas.
The AFTC was last extended in 2019 for the 2018, 2019 and 2020 calendar years and applies to all classes of natural gas vehicles fueled by geologic and renewable CNG and LNG. Its continuation is important to provide investment certainty for fleets of all shapes and sizes working to reduce their environmental footprint and address clean air and climate change sustainability goals.
To access NGVAmerica’s recently updated guidance on filing for the AFTC for calendar years 2020 and 2021, click here.