The US state of New Mexico may benefit from a new bill moving through the House of Representatives that seeks to provide an economical motor fuel alternative for New Mexicans, reports the Cibola Beacon. Specifically, HB 198 calls for the provision of “Income tax credits to encourage conversion of vehicles to the us of natural gas and to encourage retail businesses selling gasoline to expand into dispensing natural gas for vehicle fuel; providing for an exemption for the motor vehicle excise tax for the purchase of new motor vehicles that use natural gas as a fuel.”
The bill, sponsored by House Speaker Ben Lujan, offers a vehicle owner additional state tax credits after the owner takes advantage of federal credits. According to the news report, under HB 198, a vehicle owner converting a vehicle at a cost of USD 10,000 could expect the final cost to be USD 1,800.
Economic benefit comes with by way of reduced refuelling costs also – the average cost of natural gas is about $1.76 per gallon, compared with more than $3 per gallon for petroleum-based fuel.
The bill now goes to the House Judiciary Committee. More information is available on the New Mexico Legislature site.
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