|Congress passed H.R. 1865 on December 19, 2019, which will provide the propane industry with prospective tax certainty as well as valuable research and development funding.
National Propane Gas Association (NPGA) President and CEO Stephen Kaminski applauded the work of Congress on passing critical year-end legislation that supports small businesses and energy consumers across the country.
“When Congress and the private sector work together, America wins,” Kaminski said. “This legislation will motivate consumers to make smart, green energy decisions, drive the development of modern technology using resilient energy sources such as propane, and promote the growth of small businesses.”
H.R. 1865 includes an extension of the alternative fuel tax credit and the refueling property credit, covering the years 2018-2020. These credits incentivize the use and adoption of propane as an engine fuel. These propane-powered vehicle credits are worth more than $500 million, putting more clean vehicles on the road and money back in the pockets of consumers.
For the first time since 2015, Congress has extended these credits prospectively — through December 31, 2020. “Congress is sending a clear message to the country that it recognizes propane as a clean and green fuel of the future,” said Kaminski. NPGA thanks Representative John Larson (D-CT) and Senator Richard Burr (R-NC) for their bipartisan and bicameral leadership to advance these essential policy initiatives.
Recognizing the advantages of propane as an independent energy source with wide-ranging applicability, H.R. 1865 also provides funding for U.S. Department of Energy research, development, and demonstration projects, including $5 million for propane vehicle engine technology development and access to up to $10 million for propane combined heat and power systems development.
In addition, NPGA will continue to advocate for H.R. 5089, the Alternative Fuel Tax Credit Extension Act of 2019, which would extend the alternative fuel tax credit prospectively for several more years. “Long-term credits give customers and communities certainty, providing the best incentives to increase investment in low-emission, propane-powered vehicles,” Kaminski said. “The association looks forward to working with Congress in the coming years to build on this significant victory and bring value to propane customers across the country.”
Contact Michael Baker with any questions.