Clean fuel leaders are celebrating the passage of an alternative fuel tax credit extension by the U.S. Congress that will give funding to important research and expansion funding, certainty to the propane industry, and more.
The alternative fuel tax credit extension is part of the H.R. 1865 bill. The bill passed through Congress, then Senate, and finally signed by President Trump on December 20th. The extension of the $0.50/gallon excise tax credit encompasses fuels including propane, liquified and compressed natural gas (CNG & LNG), and liquefied hydrogen. H.R. 1865 also includes an extension of the alternative fuel infrastructure tax credit.
This action gives a tax credit of up to 30% of the cost (not surpassing $30,000) of installing refueling equipment for natural gas (CNG, LNG, RNG), propane autogas, hydrogen, E85 and minimum B20 biodiesel. Electric vehicle charging infrastructure is also qualified for the tax credit.
Before the passage, all these incentives expired at the end of 2017. The bill not only extends the credits through 2020, but it also authorizes the implementation of the credits retroactively for calendar years 2018 and 2019.
National Propane Gas Association (NPGA) President and CEO Stephen Kaminski has high praise for the passage regarding the power of consumers and business owners. “When Congress and the private sector work together, America wins,” he said. “This legislation will motivate consumers to make smart, green energy decisions, drive the development of modern technology using resilient energy sources such as propane and promote the growth of small businesses.”
Tennessee Clean Fuels (TNCF) and East Tennessee Clean Fuels (ETCF) Executive Director and Clean Cities Coordinator Jonathan Overly applauded the passage as a win for fleets as well. “For going on a decade, almost every year [besides one three-year spread] these credits have been retroactively renewed for one year and in most cases put in place for the current year,” he said. “ This legislation is most significant because it provides three years of future planning for fleets.”
The passage is certainly a great way for the clean fuel industry to welcome in the 2020 year.
Read why 2020 is the year of biodiesel here.
