December 27, 2020. The Alternative Fuels Tax Credit (AFTC) was included in a combined year-end FY 2021 Omnibus spending and Covid-19 stimulus package passed by U.S. Congress. The legislation 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. It also supports the expansion of renewable natural gas (RNG).
“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.”
“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.”
“This extension of the tax credit comes at a particularly opportune time as more fleets are realizing the tremendous impact that RNG is having on reducing carbon and the long-term impact it has on climate change,” said Andrew J. Littlefair, president and CEO of Clean Energy. “We applaud Congress and the President for taking this action and encourage the implementation of permanent measures to encourage further use of this superior and clean fuel.”
The overall measure awaits President Trump’s signature into law in order to become effective.
More information in www.usgasvehicles.com