ALTERNATIVE FUEL TAX CREDITS EXTENDED FOR 2020
The National Propane Gas Association (NPGA) announced that Congress passed H.R. 1865; this will provide the propane industry with prospective tax certainty as well as valuable research and development funding. Following Senate passage, H.R. 1865 headed to the White House, where President Donald Trump signed the legislation into law Dec. 20, 2019! H.R. 1865 includes an extension of the alternative fuel tax credit and the refueling property credit, covering the years 2018-20. It was the first time since 2015 that Congress extended the credits prospectively – through Dec. 31, 2020. The credits are $0.37 per gallon on the sale of propane when used in motor vehicles (including forklifts and lawnmowers) and up to 30% of the cost of qualified alternative fuel vehicle refueling property (capped at $30,000). The propane-powered vehicle credits are worth more than $500 million- putting more clean vehicles on the road and money back into the pockets of consumers. 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. FordPros has long covered the struggle that propane has had to become a mainstream Alt Fuel contender, and this is a great validation of the benefits that this fuel offers to many markets.