Biofuels, EVs, NGVs, Propane See Tax Breaks Extended, Reinstated
An extension of clean vehicle tax incentives and even the reinstatement of expired tax breaks were included in the American Taxpayer Relief Act passed on New Year’s Day to avert the “fiscal cliff” tax hikes and spending cuts.
“Happy New Year!” NGVAmerica president Rich Kolodziej said in a special bulletin to members. “A really great start to 2013!”
“We’ll begin to see real economic impacts with companies expanding production,” said National Biodiesel Board federal affairs VP Anne Steckel. The $1-per-gallon biodiesel tax incentive implemented in 2005, but allowed to expire (for the second time) at the end of 2011, has been reinstated through the end of 2013 – retroactive for 2012.
EVs Benefit Too, Likewise Algae and Cellulosics, and Propane
“The extension of the alternative fuel tax credit and the refueling infrastructure tax credit will help get more propane autogas vehicles on the road,” said National Propane Gas Association president and CEO Richard Roldan.
The plug-in electric vehicle tax credit of $2,500 has been reinstated too, as have tax credits for algae-based and cellulosic biofuels.
According to the Biotechnology Industry Organization, the new law provides incentives to invest in both cellulosic and algae biofuel production by renewing a $1.01 per gallon tax credit for producers and allowing accelerated depreciation for newly constructed facilities during 2013 – and modifying the credits to include algae.
“Already, private companies have made significant investments to develop advanced cellulosic and algae biofuels and build new production capacity, BIO industrial and environmental VP Brent Erickson said in a release.
“Tax policies should help to support investment in these innovations,” Erickson said. “We thank Congress for extending the producer tax credit and bonus depreciation and enabling algae producers to qualify.
“Stability in such policies is crucial to maintaining private investment,” he added. “We hope to work with Congress in the coming year to extend and maintain additional policies that support this innovation, such as a strong energy title in any upcoming Farm Bill, and the Renewable Fuel Standard.”
Clean Energy Predicts 2013 Growth
Natural gas vehicle advocates have gotten back their 50¢ per gallon or gallon equivalent tax credits and a $30,000 infrastructure tax credit, also retroactive for 2012.
“For LNG, the fuel tax credit helps compensate for the federal LNG tax penalty,” NGVAmerica’s Kolodziej told F&F. “Eliminating that penalty is high on our Congressional agenda for 2013.” (The penalty has to do the LNG’s lower per-gallon energy content as compared with diesel.)
“For CNG, the fuel tax credit will increase NGVs’ economic advantage and help accelerate the industry’s ability to displace foreign oil,” Kolodziej says.
“We are extremely pleased that Congress included the $0.50 per gallon alternative fuel tax credit in the American Taxpayer Relief Act passed yesterday,” said Clean Energy Fuels (NASDAQ:CLNE) president and CEO Andrew Littlefair.
“This will help the acceleration of natural gas as a transportation fuel,” Littlefair told F&F this afternoon. “Hundreds of thousands of vehicles in the U.S. are currently enjoying the environmental and economic benefits of natural gas, an abundant, domestic and cleaner-burning fuel choice.
“With yesterday’s action, we anticipate those numbers to rapidly grow.”
NBB says that the $1 per gallon biodiesel credit could mean some 30,000 jobs in the biodiesel industry this year.
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Source: National Biodiesel Board, NGVAmerica, White House