Godlewski Cites Continued Support for Natural Gas as a Transportation Fuel
NGVAmerica commends the U.S. Senate for passing tax legislation that extends the alternative fuel and infrastructure tax credits retroactively for all of 2014. The measure, already approved by the House, now goes to the President and is expected to be signed into law within the week.
The Tax Increase Prevention Act of 2014 (H.R. 5771) extends over fifty provisions of the tax code that expired at the end of 2013 or during 2014. NGVAmerica lobbied for key provisions contained in H.R. 5771, including:
• Extension of Fuel Tax Credit for Natural Gas, which extends the $0.50 per gasoline gallon equivalent (GGE) credit/payment for the business use of natural gas as a transportation fuel; and
• Extension of Tax Credit for Alternative Fuel Vehicle Refueling, which extends the 30 percent/$30,000 investment tax credit for alternative vehicle refueling property and the $1,000 tax credit for home refueling appliances.
Also included are the extension of several other tax provisions including the 50 percent bonus depreciation option for nearly all business equipment placed in service in 2014.
“Passage of the alternative fuel tax and infrastructure credits help build the network to support NGVs,” said NGVAmerica President Matthew Godlewski. “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.”
Unfortunately, the tax inequity between liquefied natural gas (LNG) and diesel was not addressed by this Congress. Currently, LNG is taxed at a higher rate than the diesel fuel it competes with, working against NGV adoption in the heavy truck market. Resetting the tax rate so that it is applied on an energy content basis is a common sense measure that would remove an artificial barrier from the market. Senators Michael Bennet (D-CO), Orrin Hatch (R-UT), Ron Wyden (D-OR), and Richard Burr (R-NC) expressed their commitment to exploring opportunities in the next Congress to correct this inequity.
“We were encouraged that critical issues such as fixing the LNG/diesel tax disparity were in the mix if a larger tax deal could have been reached. It was a solid signal that we’re getting close to resolving the federal inequities that are standing in the way of further accelerating natural gas use in the trucking sector,” Godlewski said.
Click here to learn more about The Tax Increase Prevention Act of 2014 (H.R. 5771).