Clean Energy Welcomes Alt-Fuel Tax Credit in U.S

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Clean Energy Welcomes Alt-Fuel Tax Credit in U.S

NGVAmerica’s Matt Godlewski says long-term proposals next on the agenda

Clean Energy Fuels Corp. applauds the passage by the U.S. Congress of an alternative fuel tax credit which will continue to support the use of natural gas, a cleaner and domestic transportation fuel option. The credit is retroactive to 2015 and extends through 2016 and applies to compressed natural gas (CNG) and liquefied natural gas (LNG).

With an anticipated signature by President Obama, the tax credit will cap a successful year for Clean Energy 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. As David Biderman, the executive director and CEO of the Solid Waste Association of North America recently said, “…one of the remarkable things that has occurred this year is that despite the declining price of diesel, the purchase of natural gas fueled waste collection vehicles has remained steady as companies and local governments seek to reduce carbon footprint, reduce emissions and reduce costs.”

“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,” said Andrew J. Littlefair, president and CEO of Clean Energy. “We applaud Congress for taking this action and encourage the implementation of permanent measures to encourage further use of this superior and cleaner fuel.”

Clean Energy, an NGV Global Sponsor member, has created a network of over 500 LNG and CNG fueling stations across the U.S., ensuring fleets are powered for both short routes across town and long hauls across the continent.

NGVAmerica

In a separate press release North American trade association NGVAmerica likewise welcomed the decision of Congress. “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 Matthew Godlewski. “Congress clearly recognizes the economic, environmental and energy security benefits of natural gas in powering fleets across the country.

The Protecting Americans from Tax Hikes (PATH) Act of 2015 extends numerous provisions of the tax code that expired at the end of 2014 or during 2015.  NGVAmerica supported key provisions contained in the act, including:

  • Extension of Alternative Fuel Excise Tax Credit, which extends the $0.50 per diesel gallon equivalent (DGE) and gasoline gallon equivalent (GGE) credit/payment for the use of natural gas as a transportation fuel; and
  • Extension of Alternative Fuel Vehicle Refueling Property Credit, which extends the 30 percent/$30,000 investment tax credit for alternative vehicle refueling property and the $1,000 tax credit for home refueling appliances.

Also included are the extension of several other tax provisions including the 50 percent bonus depreciation option for nearly all business equipment placed in service in 2015.

“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,” said Godlewski.

Natural gas fuel costs up to $1.00 less per gallon than gasoline or diesel, depending on local market conditions. The use of natural gas fuel not only reduces operating costs for vehicles, but also reduces greenhouse gas emissions up to 30% in light-duty vehicles and 23% in medium to heavy-duty vehicles. In addition, nearly all natural gas consumed in North America is produced domestically.

https://www.ngvglobal.com/blog/clean-energy-welcomes-alt-fuel-tax-credit-in-u-s-1219