Congress has reached a bipartisan deal that contains several important provisions for the transportation industry. Included in the legislation are tax credit extensions for alternative fuels, carbon-capture technology, fuel cells, biofuels, and energy efficiency.
The full legislative package combines a $900 billion COVID-19 relief package and an omnibus spending bill for 2021 with tax extenders and energy policy changes.
Originally scheduled to expire at the end of the month, the bill calls for a one-year extension of the $1.01 per gallon credit for second-generation biofuel. In addition, the bill’s alternative fuel tax credit will continue to support the expansion of renewable natural gas (RNG), one of the cleanest transportation fuels. The legislation extends the credit through 2021 and applies to RNG in compressed natural gas (CNG) or liquefied natural gas (LNG) applications.
The Alternative Fuels Tax Credit extends the $0.50 per gallon fuel credit/payment for the use of natural gas and propane autogas as transportation fuels. The Alternative Fuel Vehicle Refueling Property Credit extends the 30%/$30,000 investment tax credit for alternative vehicle refueling property. To see the full article, click here.