US tables tax breaks for nat gas truck buyers, developers

WASHINGTON — Scaled back from its original proposal, the NAT GAS Act was reintroduced in Congress yesterday to provide incentives for the purchase of natural gas trucks and to build refueling infrastructure across the U.S.

The bipartisan NAT GAS Act (or, officially, the New Alternative Transportation to Give Americans Solutions of 2011) was introduced by Rep. John Sullivan, (R-Okla.), Dan Boren, (D-Okla).

Although there are many partisan sticking points when it comes to this year’s budget, the legislation enjoyed wide support from both sides of the isle, including President Obama.

The proposed incentives – mainly in the form of tax credits to jump-start purchases and refueling development — have been clawed back to five years, down from 17 years in the original legislation (which got bogged down because it was imbedded in larger, more controversial bills).

The legislation focuses on commercial trucks, but also provides tax incentives for passenger vehicles and home refueling stations.

It will provide a tax credit for up to 80 percent of the incremental cost of buying a natural gas vehicle (from $7,500 for a light-duty passenger vehicle to $64,000 for the heaviest trucks).

A 50-cent-per-gallon fuel tax credit is also in place.

An infrastructure tax credit of 50 percent of the cost up to a maximum of $100,000 per fueling station and a tax credit for manufacturers of natural gas vehicles are also included.

The bill also includes other provisions that will facilitate the production and use of natural gas vehicles.

However, support among the alternative fuels industry was not unanimous.

Autogas for America founder Stuart Weidie says the NAT GAS Act singles out only one alternative for federal incentives while excluding all other alternative fuels.

He complains that the bill blatantly excludes other "American-made vehicle fuel alternatives" such as propane autogas.

In Canada, meanwhile, there’s no doubt that proponents of tax incentives are hoping that a similar legislative breeze blows north.

The Canadian Trucking Alliance and some of its largest member carriers have been urging decision makers to approve incentives that would boost natural gas vehicle penetration in the market.


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