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Obama Signs Law Extending Alternative Fuel and Infrastructure Tax Credits


NGVAmerica applauded the U.S. Senate and House for passing tax legislation that extends the natural gas fuel and infrastructure tax credits for two years—retroactively for 2015 and for all of 2016. We also commend President Obama for quickly signing the measure into law Friday evening.

“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 fuel 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.

The PATH Act of 2015 also included several other tax provisions, such as the bonus depreciation option for 2015 – 2017 at 50 percent (40 percent in 2018, 30 percent in 2019) for nearly all business equipment placed in service in 2015.  It also makes permanent the small business expensing of equipment under section 179, allowing expensing of $500,000 for businesses spending $2 million or less on new equipment.  The Senate and the House also passed the FY 2016 Consolidated Appropriations Act (HR 2029) that provides $1.1 trillion to fund the government.  HR 2029 includes an increase of at least $17 million for the U.S. Department of Energy (DOE) Clean Cities program, guidance language that addresses NGV RD&D at the DOE, and CNG tank safety and regulatory issues at the U.S. Department of Transportation (DOT).  The budget and tax extender measures were combined into one bill, HR 2029, in the House and it was that bill that was signed by the President.

“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.