50¢ Per Gallon and Fueling Infrastructure Credits
Are Extended and Made Retroactive to Cover 2015
NGVAmerica and member companies expressed great satisfaction late last week as the U.S. Congress voted to reinstate key tax provisions for natural gas for transportation that had been allowed to expire at the end of last year.
Of critical note:
- The Alternative Fuel Excise Tax Credit (which provides a 50¢ per gallon credit calculated on a volumetric basis) is retroactively applied to 2015 and will extend through the end of 2016.
(Notably, the excise tax credit for LNG will not be 50¢ per gallon on a volumetric basis. Instead, it will be calculated on an energy equivalent basis, creating parity with the diesel. This aligns with the recent LNG fuel tax change; F&F, July 31).
- The Alternative Fuel Vehicle Refueling Property Credit was likewise retroactively applied to 2015 and will extend through 2016. The provision provides up to $30,000 per natural gas, biodiesel, propane, hydrogen, or electricity refueling stations, and a $1,000 tax credit for home fueling appliances.
“Passage of the alternative fuel tax and infrastructure credits means hundreds of millions in savings to NGVAmerica members and their customers for using clean-burning natural gas for their transportation needs,” said NGVAmerica president Matt Godlewski said in a release.
“Congress clearly recognizes the economic, environmental and energy security benefits of natural gas in powering fleets across the country.
Next Year? Long-Term Incentives
“As Congressional leaders contemplate tax reform next year, we look forward to discussing long-term proposals that promote the further adoption of natural gas as a transportation fuel,” Godlewski said.
“The tax credit will support the continued expansion of natural gas fueling in the U.S., which will help to clean our air and keep dollars here,” Clean Energy Fuels president and CEO Andrew Littlefair said in his firm’s release.
Clean Energy Cites ‘Successful Year’
“We applaud Congress for taking this action and encourage the implementation of permanent measures to encourage further use of this superior and cleaner fuel,” Littlefair said.
The Congressional action caps a successful year for Clean Energy, the company said, “that includes the completion of 68 station projects and adding over 3,000 vehicles to the Clean Energy fueling network, despite facing the headwinds of lower diesel prices.”
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Source: NGVAmerica and Clean Energy Fuels with Fleets & Fuels follow-up