The taxpayer must place the facility in service before Jan. 1, 2015, but may claim the tax credit for a previous installation after that date. The bill’s provisions are repealed on Jan. 1, 2019.
Senate File 520 establishes electric or natural gas facility tax credit for persons who construct, install, and place in service a facility that stores, dispenses, dries, and meters electricity and compressed natural gas. The allowed equipment would include pumps and other equipment associated with the dispensing of compressed natural gas
Bill’s floor manager Sen. Rob Hogg said that it is an exciting first-ever tax credit to incent energy alternatives for transportation fuels for motor vehicles that are registered for use on the road, according to Eastern Iowa Government.
It is worth mentioning that the President of the United States Barack Obama led the way in order to implement CNG in transport when recently emphasized –as part of his energy policy- the potential of natural gas, launched the Green Fleet Partnership and also encouraged the NAT GAS Act of 2011, which was introduced in the U.S. House of Representatives last week.
