November 26, 2019. NGVAmerica applauded the introduction of the Alternative Fuel Tax Credit Extension Act of 2019 by Reps. Lizzie Fletcher (TX-7) and Markwayne Mullin (OK-2). The legislation would reinstate the lapsed $0.50/gallon Alternative Fuels Tax Credit (AFTC) retroactively for two years (2018-2019) while providing a five-year extension (2020-2024) and a two-year “phasedown” at $0.25/gallon (2025-2026).
“This legislation provides the added needed incentive for fleets of all sizes – public and private – to transition to clean natural gas transportation fuel,” said Dan Gage, President of NGVAmerica. “Heavy-duty vehicles are the fastest growing vehicle segment and among the largest contributors of pollutant and greenhouse gas emissions in the transportation sector. Natural gas vehicles are zero emission equivalent and can be carbon-neutral – even negative – depending on the natural gas source.”
With this credit, America’s transit agencies can continue to invest in cleaner, commercially available and proven natural gas buses without reducing service or increasing fares, school districts can provide exhaust-free rides to school by replacing their dirty legacy fleets, and freight haulers and package delivery companies can afford to replace aging diesel trucks with the cleanest heavy-duty truck on the market, which runs entirely on natural gas.
“Representatives Fletcher and Mullin know that we can’t have clean air without cleaner trucks,” added Gage. “This legislation is a down payment on a clean air / carbon cutting future for today’s kids and all future generations, and it invests in technology that is market-ready, proven, and affordable today.”
The Alternative Fuels Tax Credit – like many lapsed credits – was last extended for the 2017 calendar year. Its longer-term extension is important to provide investment certainty for fleets of all shapes and sizes working to reduce their environmental footprint and address clean air and climate change sustainability goals.