OUR THOUGHTS ON:

Incentives for Natural Gas Conversion of Fleet Vehicles

State and Local Tax

By Timothy Adams

Governor Tom Corbett has signed House Bill 1950, the Marcellus Shale bill, into law. The law creates a Natural Gas Energy Development Program, which will provide incentives to convert fleets with vehicles weighing at least 14,000 pounds to compressed natural gas, liquefied natural gas or hi-fuel vehicles.

In order to be eligible to receive a grant, an eligible applicant must provide to the Department of Environmental Protection ("Department") a plan to convert five or more fleet vehicles into eligible vehicles or purchase five or more eligible vehicles.

A grant for an eligible vehicle shall be limited so that it will not exceed 50% of the incremental purchase cost. Further, the amount of the grant may not exceed $25,000 for each fleet vehicle.

This incentive should be considered and evaluated by eligible applicants. Any questions should be directed to Tim Adams or your Schneider Downs contact.

© 2012 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.

This advice is not intended or written to be used for, and it cannot be used for, the purpose of avoiding any federal tax penalties that may be imposed, or for promoting, marketing or recommending to another person, any tax related matter.

Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax, or legal advice. Please note that individual situations can vary. Therefore, this information should be relied upon when coordinated with individual professional advice.

© 2018 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.

comments