NGVAmerica Applauds Inclusion of AFTC in Year-End Spending Bill
$0.50/Gallon Nat Gas Federal Tax Credit Extended for 2018, 2019, and 2020
Washington, DC – NGVAmerica today applauded the inclusion of the Alternative Fuels Tax Credit (AFTC) in a year-end FY 2020 spending bill that cleared the full U.S. House of Representatives today. The measure moves on to the U.S. Senate for consideration and then on to President Trump for his signature into law.
Today’s vote caps a mammoth years-long advocacy effort led by NGVAmerica to extend the important industry measure previously expired in 2017.
“This bipartisan budget agreement wisely includes provisions aimed to promote the use of clean, domestic natural gas in transportation,” said NGVAmerica President Daniel Gage. “By extending the Alternative Fuels Tax Credit for natural gas vehicles and the Alternative Fuel Vehicle Refueling Property Tax Credit for natural gas refueling stations through 2020, Congress signals how important clean technology natural gas vehicles are to growing our economy, improving our air quality, and enhancing our energy security while reducing our carbon footprint.”
The legislation includes the Alternative Fuels Tax Credit, which extends the $0.50 fuel credit/payment for the use of natural gas as a transportation fuel, and the Alternative Fuel Vehicle Refueling Property Credit, which extends the 30 percent/$30,000 investment tax credit for alternative vehicle refueling property.
Natural gas vehicles are powered by American fuel, American technology, and American innovation. No commercially-available heavy-duty powertrain solution runs cleaner than natural gas, and the cleanest heavy-duty truck engine in the world is powered by natural gas.
“This legislation provides the added needed incentive for fleets of all sizes – public and private – to transition to clean natural gas transportation fuel,” said Gage. “Heavy-duty vehicles are the fastest growing vehicle segment and among the largest contributors of pollutant and greenhouse gas emissions in the transportation sector. Natural gas vehicles are zero emission equivalent and can be carbon-neutral – even negative – depending on the natural gas source.”
With this credit, America’s transit agencies can continue to invest in cleaner, commercially available and proven natural gas buses without reducing service or increasing fares, school districts can provide exhaust-free rides to school by replacing their dirty legacy fleets, and freight haulers and package delivery companies can afford to replace aging diesel trucks with the cleanest heavy-duty truck on the market, which runs entirely on natural gas.
“We could not have accomplished this extension without assistance from our key champions in Congress,” added Gage. “Leaders such as Senator Richard Burr, Reps. John Larson, Lizzie Fletcher, Markwayne Mullin and many others were crucial in reaching out to House and Senate leadership with their support and in making the case for clean transportation fuels.”
The Alternative Fuels Tax Credit – like many lapsed credits – was last extended for the 2017 calendar year and applies to all classes of natural gas vehicles fueled by geologic and renewable CNG and LNG. Its longer-term extension is important to provide investment certainty for fleets of all shapes and sizes working to reduce their environmental footprint and address clean air and climate change sustainability goals.
More on how natural gas is a NOW transportation solution can be found at: https://ngvam.wpengine.com/why-ngv/.