NGVAmerica applauds the U.S. Senate Finance Committee and Chairman Orrin Hatch (R-UT), Ranking Member Ron Wyden (D-OR) and Sens. Michael Bennet (D-CO) and Richard Burr (R-NC) for moving legislation forward to extend expired and expiring tax credits, including those for alternative fuel and infrastructure.
The legislation, which passed the Finance Committee with a vote of 23 to 3, extends the 50 cent per gallon credit for natural gas fuel and the 30%/$30,000 investment tax credit for natural gas infrastructure from January 1, 2015 through December 31, 2016. This extension will give a boost to current and prospective fleets considering the transition to clean, domestic natural gas.
In addition, the legislation includes an amendment offered by Sens. Burr and Bennet that makes modifications to correct the liquefied natural gas (LNG) tax inequity. This change places LNG on parity with diesel fuel by taxing the fuels equally based on energy content, rather than volume. Currently, LNG is effectively taxed at a rate that is 70% higher than that of diesel, which creates an unfair penalty on those using domestically produced LNG in their trucking fleets. This common sense amendment removes an artificial barrier to the adoption of natural gas vehicles.
“NGVAmerica commends the Senate Finance Committee for their leadership to advance natural gas vehicles,” says Matthew Godlewski, NGVAmerica President. “If passed, this legislation is great news for fleets who are looking to clean-burning, low-cost, domestic natural gas to power their transportation needs.”