Congress Extends Federal Alternative Fuel Tax Credits
The United States Congress has passed legislation that, among other things, will extend several expired tax credits of great importance for the U. S. alternative fuel vehicle industry.
On Thursday, December 17th, 2015 the U. S. House of Representatives overwhelmingly approved a tax extenders package in a 318-109 vote. The tax legislation was then bundled with an omnibus spending bill that will continue funding the federal government, and the U. S. Senate easily passed the two bills in a 65-33 vote on Friday, December 18th, 2015. President Barack Obama has said he will sign the legislation into law.
The tax bill, known as the Protecting Americans from Tax Hikes Act of 2015, will extend dozens of federal tax credits that expired at the end of 2014 and make some subsidies permanent. The package includes a two-year extension through December 31st, 2016, for various alternative fuel incentives.
Specifically, the legislation will resurrect the federal $0.36 – $0.50/gallon alternative fuels excise tax credit, which covers compressed natural gas, liquefied natural gas, propane AUTOGAS and other alternative transportation fuels. The package will also extend the alternative vehicle refueling property subsidy, which provides a tax credit covering up to 30% of the cost of infrastructure installation.