As expected, President Barack Obama signed into law last Friday two bills that benefit the alternative fuel vehicle industry.
H.R.5771, or the Tax Increase Prevention Act of 2014, retroactively extends over 50 lapsed tax breaks for one year through the end of 2014. The U.S. House of Representatives passed the bill on Dec. 3, and the Senate later followed suit.
The law includes an extension of the federal $0.50/gallon alternative fuels excise tax credit, which covers compressed natural gas, liquefied natural gas, propane autogas and other alternative transportation fuels. The extension means that all alt-fuel purchases made this calendar year are eligible for the credit.
H.R.5771 also includes a retroactive one-year extension of the 30% alternative refueling infrastructure tax credit, which is capped at $30,000. Furthermore, the law renews the $1,000 home refueling tax credit through the end of this year.
NGVAmerica has welcomed the passage of H.R.5771.
In a recent statement, NGVAmerica President Matthew Godlewski said, “Passage of the alternative fuel tax and infrastructure credits help build the network to support NGVs. It also demonstrates continued support in the Congress for natural gas as a transportation fuel. There's more work to be done, and we look forward to working with the new Congress on long-term measures that accelerate the industry.”
In addition to H.R.5771, President Obama also signed into law the National Defense Authorization Act for fiscal-year 2015. The legislation, which passed the House in November and the Senate earlier this month, contains a provision modifying the federal Corporate Average Fuel Economy (CAFE) program.
Previous law allowed original equipment manufacturers to earn credits for compliance with the CAFE program by producing bi-fuel vehicles, subject to a cap in the number of credits. The new NDAA provision, however, removes the credit cap for bi-fuel natural gas vehicles.
