U.S. government extends alternative fuel tax credits
The U.S. Congress passed H.R. 1865, which was signed into law in December by President Donald J. Trump. The initiative will provide the LPG industry with prospective tax certainty as well as valuable research and development funding, according to the National Propane Gas Association (NPGA) President and CEO Stephen Kaminski, who celebrated the work of Congress on passing critical year-end legislation that supports small businesses and energy consumers across the country.
H.R. 1865 includes an extension of the alternative fuel tax credit and the refuelling property credit, covering the years 2018-2020. These credits incentivise the use and adoption of LPG as a vehicle fuel. These Autogas vehicle credits are worth more than $500 million, putting more clean vehicles on the road and money back in the pockets of consumers.
For the first time since 2015, Congress has extended these credits prospectively—through December 31, 2020. “Congress is sending a clear message to the country that it recognises LPG as a clean and green fuel of the future,” said Kaminski.
Recognising the advantages of LPG as an independent energy source with wide-ranging applicability, H.R. 1865 also provides funding for U.S. Department of Energy research, development, and demonstration projects, including $5 million for Autogas vehicle engine technology development and access to up to $10 million for LPG combined heat and power systems development.
In addition, NPGA will continue to advocate for H.R. 5089, the Alternative Fuel Tax Credit Extension Act of 2019, which would extend the alternative fuel tax credit prospectively for several more years. “Long-term credits give customers and communities certainty, providing the best incentives to increase investment in low-emission, Autogas vehicles,” added Kaminski.
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5 February 2020