Tax credits set to expire end-of-year; new incentives sought
The American Public Gas Association (APGA) has joined the American Gas Association (AGA) and Natural Gas Vehicle Association (NGVAmerica) on a letter in support of Congress extending expiring tax credits for natural gas vehicles. The letter was sent to the chairs and ranking members of the Senate Finance Committee and the House Ways and Means Committee. The tax credits expire at the end of the year unless extended by Congress.
The House and Senate are working to develop legislation that would need to pass before the end of the year that would extend tax credits set to expire. APGA members can receive a payment from the IRS for the sale or use of natural gas in certain vehicle applications. The IRS provides for a tax credit of 50-cent per gasoline-gallon-equivalent of CNG or liquid gallon of LNG for the sale of CNG and LNG for use as a motor vehicle fuel. More information is available here.
The letter asks for the extension of three specific natural gas vehicle incentives including:
- Incentives for the Credit for Sale or Use of CNG and LNG and other alternative fuels;
- Credit for Sale or Use of CNG and LNG and other alternative fuel mixtures;
- Payment for Sale or Use of CNG and LNG and other alternative fuels and alternative fuel mixtures.
The letter stated that “Congress recognizes the importance of petroleum displacement and fuel diversification. Extending the effective dates of these expiring provisions would help continue the progress made by alternative-fuel vehicles in displacing gasoline and diesel. It also would send a clear message to fleet owners and other vehicle owners that Congress supports the use of alternative fuels as both an energy security and national security strategy for the mid-and long term. It also would help stimulate investment in alternative-fuel vehicle fueling infrastructure, which is essential to ensure a growing customer base.” A copy of the letter can viewed here.
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