(Columbus)—The much-anticipated tax credits for alternative transportation fuels were passed out of the House Tuesday, December 17. Due to a considerable amount of work being done in Washington on the issue, an agreement was reached to extend alternative fuel credits beyond 2019.
Excise tax credits for alternative fuels including compressed natural gas (CNG), propane, and biodiesel are typically renewed and applied to the previous year retroactively. Alternative fuel groups have created a legislative priority to make the credit for multiple years to spur better investment and allow fleets as well as the business community to plan ahead. Tax credit extensions for alternative fuels were included in the tax package to be finished by the end of the year.
“This bill makes historic investments in projects across the Department of Energy, Army Corps of Engineers, Department of the Interior, and Bureau of Reclamation that meet our national and regional priorities,” said Congresswoman Marcy Kaptur, the Chair of the House Appropriations Subcommittee on Energy and Water Development. “This bill makes historic investments to address the climate crisis and places our nation at the forefront of global energy innovation.”
The agreement largely extends the expiring and expired tax breaks through 2020. Some of the tax breaks had expired at the end of 2017 and are being retroactively extended, such as tax credits regarding compressed natural gas (CNG) and propane. The biodiesel tax credit, which expired at the end of 2017, would be extended until 2022. That credit is a top priority of Senate Finance Committee Chairman Chuck Grassley (R-Iowa) and other lawmakers in agriculture-heavy states.
“Congress realizes that incentives for alternative transportation fuel is a high priority to develop the market and increase investment,” commented Jason Phillips, Policy Director for Clean Fuels Ohio. “I know Chairperson Kaptur worked very hard with others on the committee to reach an agreement that balanced the needs of the alternative fuel industry with other priorities in the package.”
The bill has been referred to the United States Senate where it is expected to pass in the very near future.