NGVAmerica Successfully Champions AFTC Extension Through 2021
Passed by Congress, the $0.50/Gallon Nat Gas Federal Tax Credit Extension Awaits President’s Signature Into Law
Washington, DC – NGVAmerica applauds the inclusion of the Alternative Fuels Tax Credit (AFTC) in a combined year-end FY 2021 Omnibus spending and Covid-19 stimulus package passed by Congress late last night. The votes in the U.S. House of Representatives and Senate cap an ongoing advocacy effort led by NGVAmerica to extend the important industry measure beyond its previously scheduled expiration at the end of 2020.
“If we want clean air, we need clean trucks and buses,” said NGVAmerica President Daniel Gage. “By extending the AFTC through 2021, 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.
The Alternative Fuels Tax Credit was last extended last year for the 2018, 2019, and 2020 calendar years and applies to all classes of natural gas vehicles fueled by geologic and renewable CNG and LNG. Its continuation 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.
The overall measure awaits President Trump’s signature into law in order to become effective.
More on how natural gas is a NOW transportation solution can be found at: https://ngvam.wpengine.com/why-ngv/.
NGVAmerica is a national organization of over 200 companies, environmental groups, and government organizations dedicated to the development of a growing, profitable, and sustainable market for vehicles powered by natural gas or biomethane. NGVAmerica member companies produce, distribute, and market natural gas and biomethane across North America, manufacture and service natural gas vehicles, engines, and equipment, and operate fleets powered by clean-burning gaseous fuels. Find out more at: www.ngvamerica.org.