- Congress has passed an alternative fuel tax credit, as part of a bill called Protecting Americans From Tax Hikes Act (PATH), which will retroactively extend tax credits for natural gas that expired last year from Jan. 1, 2015, through Dec. 31, 2016. Specifically, PATH will extend a federal $0.50/gallon alternative fuels excise tax credit on compressed natural gas, liquefied natural gas, and other alternative transportation fuels.
- The tax credit is among other progress recently made in clean fuel, including Clean Energy's completion of 68 station projects and addition of more than 3,000 clean energy vehicles, despite facing lower diesel prices.
- If it receives the anticipated signature of President Obama, the bill will extend the 30% alternative refueling infrastructure tax credit, which is capped at $30,000.
The expansion of natural gas fleets is an initiative that is gaining ground as local governments and waste management companies invest in this cleaner alternative to diesel fuel. Proponents believe the tax credits will make cleaner fuel more accessible to businesses that would otherwise rely on diesel.
David Biderman, executive director and CEO of the Solid Waste Association of North America, recently said, "…one of the remarkable things that has occurred this year is that despite the declining price of diesel, the purchase of natural gas fueled waste collection vehicles has remained steady as companies and local governments seek to reduce carbon footprint, reduce emissions and reduce costs."
"The tax credit will support the continued expansion of natural gas fueling in the U.S., which will help to clean our air and keep dollars here," said Andrew J. Littlefair, president and CEO of Clean Energy, in a statement. "We applaud Congress for taking this action and encourage the implementation of permanent measures to encourage further use of this superior and cleaner fuel."