Natural Gas Act Introduced In Senate
Some interesting news as Boone Pickens continues to put pressure on Washington to come up with an energy plan.
Legislation is now being discussed about a bill to promote use of vehicles that run on cleaner burning natural gas.
- U.S. Senate Majority Leader Harry Reid (D-NV) and Senators Orrin Hatch (R-UT) and Robert Menendez (D-NJ) were joined today by energy-independence advocate T. Boone Pickens to tout new legislation that would boost vehicles that run on clean natural gas. The NAT GAS Act, introduced today by Menendez and co-sponsored by Reid and Hatch, would extend and increase tax credits for natural gas vehicles and refueling.
Background on legislation
Expands and modify the alternative fueled vehicle and refueling property tax credits as follows:
Makes all dedicated natural gas-fueled vehicles eligible for a credit equal to 80% of the vehicle’s incremental cost. Only some dedicated natural gas vehicles currently can qualify for an 80% federal tax credit
Makes all bi-fuel natural gas-fueled vehicles eligible for a credit equal to 50% of the vehicle’s incremental cost. This is the first time bi-fuel vehicles would be eligible for a federal tax credit
Increase the allowable incremental cost limits to more accurately reflect the cost of producing or converting natural gas vehicles:
For light-duty vehicle, the purchase tax credit cap would be increased by to $12,500 (currently $5,000)
For all other vehicle weight classes, the purchase tax credit cap would be doubled
Increases the refueling property tax credit from $50,000 to $100,000 per station
Allows the natural gas vehicle and natural gas fueling infrastructure credits to be transferred by the taxpayer back to the seller or to the lessor
Allows state and local governmental entities to issue tax exempt bonds in order to finance natural gas vehicle projects
Allows 100% of the cost of a natural gas vehicle manufacturing facility that is placed in service before January 1, 2015 to be expensed and to be treated as a deduction in the taxable year in which the facility was placed in service.
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