Godlewski Cites Continued Support for Natural Gas as a Transportation Fuel
December 18, 2014
Washington, D.C. — NGVAmerica commends the U.S. Senate for passing tax legislation that extends the alternative fuel and infrastructure tax credits retroactively for all of 2014. The measure, already approved by the House, now goes to the President and is expected to be signed into law within the week.
The Tax Increase Prevention Act of 2014 (H.R. 5771) extends over fifty provisions of the tax code that expired at the end of 2013 or during 2014. NGVAmerica lobbied for key provisions contained in H.R. 5771, including:
Also included are the extension of several other tax provisions including the 50 percent bonus depreciation option for nearly all business equipment placed in service in 2014.
“Passage of the alternative fuel tax and infrastructure credits help build the network to support NGVs,” said NGVAmerica President Matthew Godlewski. “It also demonstrates continued support in the Congress for natural gas as a transportation fuel. There’s more work to be done and we look forward to working with the new Congress on long-term measures that accelerate the industry.”
Unfortunately, the tax inequity between liquefied natural gas (LNG) and diesel was not addressed by this Congress. Currently, LNG is taxed at a higher rate than the diesel fuel it competes with, working against NGV adoption in the heavy truck market. Resetting the tax rate so that it is applied on an energy content basis is a common sense measure that would remove an artificial barrier from the market. Senators Michael Bennet (D-CO), Orrin Hatch (R-UT), Ron Wyden (D-OR), and Richard Burr (R-NC) expressed their commitment to exploring opportunities in the next Congress to correct this inequity.
“We were encouraged that critical issues such as fixing the LNG/diesel tax disparity were in the mix if a larger tax deal could have been reached. It was a solid signal that we’re getting close to resolving the federal inequities that are standing in the way of further accelerating natural gas use in the trucking sector,” Godlewski said.
Click here to learn more about The Tax Increase Prevention Act of 2014 (H.R. 5771).
NGVAmerica is the national organization driving the use of natural gas as a clean, domestic, safe and abundant transportation fuel. The organization represents more than 230 companies, environmental groups, and government organizations interested in the promotion and use of natural gas in transportation. For more information about NGVAmerica, visit www.ngvamerica.org.