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Senators Introduce Bipartisan Bill
Promoting Natural Gas-Fueled Vehicles
Senate Majority Leader Harry Reid (D-Nev.) and Sens. Orrin Hatch (R-Utah) and Robert Menendez (D-N.J.) introduced July 8 a bill (S. 1408) designed to reduce oil imports by extending and expanding tax credits for vehicles that run on natural gas, as well as for natural gas vehicle manufacturers and new refueling stations.
At a news conference, Hatch and Menendez were joined by T. Boone Pickens, the oil man and renewable energy developer, who said the legislation would eliminate oil imports from the Middle East and make the country safer and more secure.
The bill is similar to a measure (H.R. 1835) introduced April 1 in the House by Reps. Dan Boren (D-Okla.), John Larson (D-Conn.), Democratic Caucus chairman, and John Sullivan (R-Okla.).
The Senate bill would:
• extend for 10 years the alternative fuel credit for natural gas used as a vehicle fuel, the credit for the purchase of a natural gas-fueled vehicle, and the credit for installation of natural gas vehicle refueling property;
• make all dedicated natural gas-fueled vehicles eligible for a credit equal to 80 percent of the vehicle’s incremental cost (currently, only some dedicated natural gas vehicles can qualify for the credit); and
• increase the allowable incremental cost limits to more accurately reflect the cost of producing or converting natural gas vehicles.
Additional Tax Incentives
The bill would increase the refueling property tax credit from $50,000 to $100,000 per station, plus allow the natural gas vehicle and natural gas fueling infrastructure credits to be transferred by the taxpayer back to the seller or to the lessor.
State and local governmental entities would be authorized to issue tax-exempt bonds in order to finance natural gas vehicle projects.
The bill would allow 100 percent of the cost of a natural gas vehicle manufacturing facility that is placed in service before Jan. 1, 2015, to be expensed and to be treated as a deduction in the taxable year in which the facility was placed in service.
The bill would also require that when complying with mandatory federal fleet alternative fuel vehicle purchase requirements, federal agencies must purchase dedicated alternative fuel vehicles if possible.
It provides for grants for light-duty and heavy-duty natural gas engine development to compensate for cutbacks by the Department of Energy in its fossil fuel research budget.”
Promoting Natural Gas-Fueled Vehicles
Senate Majority Leader Harry Reid (D-Nev.) and Sens. Orrin Hatch (R-Utah) and Robert Menendez (D-N.J.) introduced July 8 a bill (S. 1408) designed to reduce oil imports by extending and expanding tax credits for vehicles that run on natural gas, as well as for natural gas vehicle manufacturers and new refueling stations.
At a news conference, Hatch and Menendez were joined by T. Boone Pickens, the oil man and renewable energy developer, who said the legislation would eliminate oil imports from the Middle East and make the country safer and more secure.
The bill is similar to a measure (H.R. 1835) introduced April 1 in the House by Reps. Dan Boren (D-Okla.), John Larson (D-Conn.), Democratic Caucus chairman, and John Sullivan (R-Okla.).
The Senate bill would:
• extend for 10 years the alternative fuel credit for natural gas used as a vehicle fuel, the credit for the purchase of a natural gas-fueled vehicle, and the credit for installation of natural gas vehicle refueling property;
• make all dedicated natural gas-fueled vehicles eligible for a credit equal to 80 percent of the vehicle’s incremental cost (currently, only some dedicated natural gas vehicles can qualify for the credit); and
• increase the allowable incremental cost limits to more accurately reflect the cost of producing or converting natural gas vehicles.
Additional Tax Incentives
The bill would increase the refueling property tax credit from $50,000 to $100,000 per station, plus allow the natural gas vehicle and natural gas fueling infrastructure credits to be transferred by the taxpayer back to the seller or to the lessor.
State and local governmental entities would be authorized to issue tax-exempt bonds in order to finance natural gas vehicle projects.
The bill would allow 100 percent of the cost of a natural gas vehicle manufacturing facility that is placed in service before Jan. 1, 2015, to be expensed and to be treated as a deduction in the taxable year in which the facility was placed in service.
The bill would also require that when complying with mandatory federal fleet alternative fuel vehicle purchase requirements, federal agencies must purchase dedicated alternative fuel vehicles if possible.
It provides for grants for light-duty and heavy-duty natural gas engine development to compensate for cutbacks by the Department of Energy in its fossil fuel research budget.”