On April 6, 2011, The New Alternative Transportation to Give Americans Solutions of 2011 (NAT GAS 2011) was introduced by a bipartisan group of congressmen to encourage growth in the natural gas powered vehicle industry. The five-year bill looks to do this through tax credits and does not target any specific technology that is currently being developed. The bill mainly focuses on commercial vehicles, but also offers incentives for passenger vehicles. Key provisions of the bill include:
- Up to an 80% tax credit for the incremental cost of the vehicle, ranging from $7,500 for passenger vehicles to $64,000 for commercial trucks. The credit will also include bio-fuel and duel-fueled vehicles;
- Extension of the 50-cent-per-gallon fuel tax credit;
- Tax credits for a portion of the cost of putting natural gas station infrastructure into place (50% credit with $100,000 maximum per station and $2,000 for home refueling units); and
- Tax credits to the producer of natural gas-powered vehicles.
The bill has gained support from both President Obama and Speaker of the House John Boehner (R-OH). Representative John Sullivan (R-Okla.), a main proponent of the bill, says that it could be introduced as early as this summer due to rising gas prices. Other proponents of Natural Gas claim that this bill will help to reduce our dependence on foreign oil producers. Look for more debate concerning the bill in upcoming months.
For further information, please contact John Popies.
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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.