Congresswoman Lizzie Fletcher (TX-07) and Congressman Markwayne Mullin (OK-02) introduced the Alternative Fuel Tax Credit (AFTC) Extension Act of 2019, which reinstate the lapsed $0.50/gallon excise tax credit on alternative fuels (including CNG, LNG and biomethane) retroactively for two years (2018-2019) while providing a five-year extension (2020-2024) and a two-year “phasedown” at $0.25/gallon (2025-2026).
“This tax credit encourages investments in cleaner fuel options for vehicle use. The AFTC incentivizes innovation of alternative fuels, like natural gas, which leads to lower costs and reduced greenhouse gas emissions through these cleaner-burning fuels,” said Fletcher, who is a co-chair of the bipartisan Congressional Natural Gas Caucus. “I thank Congressman Mullin for joining me to introduce this legislation and I look forward to continuing our work on this important issue.”
NGVAmerica has applauded the introduction of the AFTC of 2019. “This legislation provides the added needed incentive for fleets of all sizes – public and private – to transition to clean natural gas transportation fuel,” said Dan Gage, President of NGVAmerica. “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.
“Representatives Fletcher and Mullin know that we can’t have clean air without cleaner trucks,” added Gage. “This legislation is a down payment on a clean air / carbon cutting future for today’s kids and all future generations, and it invests in technology that is market-ready, proven, and affordable today.”
The AFTC – like many lapsed credits – was last extended for the 2017 calendar year. 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.
Source: Rep. Lizzie Fletcher/NGVAmerica