On Tuesday night, the U.S. Senate passed the Tax Increase Prevention Act of 2014, which holds among its dozens of provisions an extension of the federal $0.50/gallon alternative fuels excise tax credits and a return of the 30% alternative refueling infrastructure tax credits.
The House passed the bill, H.R.5771, on Dec. 3. President Obama is expected to sign the legislation.
The excise tax credits cover compressed natural gas (CNG), liquefied natural gas (LNG), propane autogas and other alternative transportation fuels. The incentive last expired at the end of 2013, and it had not been extended this year.
H.R.5771 extends the measure through 2014, so all alt-fuel purchases made this calendar year are eligible for the credit. However, the lame-duck Congress did not opt to extend the credits into 2015 and beyond, and the many industries whose tax credits received only a one-year bump are hoping that the new Congress takes up more comprehensive, long-term tax incentives in 2015.
For its part, the 30% alternative refueling infrastructure tax credit is an incentive designed to promote the buildout of CNG and other refueling stations. The credit is capped at $30,000. Additionally, H.R.5771 reinstates the $1,000 home refueling tax credit for 2014.