Tax credits that can be tapped by alternative-fuel fleet operators have been extended through last year.
The retroactive extensions came in the Bipartisan Budget Act of 2018, which President Trump signed into law on Feb. 9.
The Alternative Fuel Excise Tax Credit, for one, had expired on Dec. 31, 2016, but the budget bill renewed it through Dec. 31, 2017. That incentive, in the amount of $0.50 per gallon, applies to propane, natural gas, and several other alternative fuels used for motor vehicles.
Another retroactive extension through 2017 was for the Alternative Fuel Infrastructure Tax Credit. That provision provides an incentive of 30% of the cost, up to $30,000, for fueling equipment for natural gas, propane, liquefied hydrogen, electricity, E85, or diesel fuel blends with at least 20% biodiesel, installed through Dec. 31, 2017.
Todd Mouw, vice president of sales and marketing for Roush CleanTech, called the tax credit extensions “good news” for propane autogas fleets, but he noted the need for a long-term approach for the incentives in the future.
“The industry was pushing for and continues to push for a multi-year extension,” Mouw said in a Roush CleanTech and School Bus Fleet webinar on Thursday.
In a press release, NGVAmerica President Daniel Gage said that the alt-fuel tax credits “promote the use of clean, domestic natural gas in transportation.” He also pointed to a push for further extensions.
“We intend to continue working with congressional leaders to extend these proven clean air investment incentives for 2018 and beyond,” Gage said. “Moving forward, our industry needs certainty and deserves parity with other zero emissions equivalent technologies.”