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March 15, 2018 10:30 AM, EDT

Natural Gas Vehicles Group Asks Congress for Fuel Tax Credit Extension

NG trucks at a Blu LNG fueling station Trucks fill up with LNG and a Blu fueling station. (R. Derek Smith/Blu)

Daniel Gage, president of National Gas Vehicles for America, asked lawmakers March 14 for a five-year extension of alternative fuel tax credits and the alternative fueling infrastructure credit.

The alternative fuel tax credit offers a credit of 50 cents per gallon on alternative fuels such as natural gas, liquefied hydrogen and propane. The alternative fueling infrastructure credit offers a tax credit of 30% for natural gas fueling equipment. Both of these credits expired Dec. 31, 2017.

Gage spoke before lawmakers at a Tax Policy House subcommittee hearing.

“If we want cleaner air we need cleaner trucks,” Gage said at the hearing. “We need federal incentives like these credits to encourage the replacement of aging dirty fleets with clean, zero-emissions-equivalent natural gas powertrains. We at NGVA believe that every child in America can and should awake in a neighborhood with clean air by 2025. Natural gas vehicles get us there.”

NGVA represents various companies, government agencies and environmental groups and supports the use of natural gas as a transportation fuel. Gage stated that vehicles that run on natural gas with Zero Emissions Equivalent technology produce 90% fewer nitrogen oxide emissions.

Gage urged lawmakers to extend these credits into 2022, which he said would offset the cost of new, cleaner trucks and accelerate investment for businesses.

“Natural gas vehicles are powered by American fuel, American technology and American innovation,” Gage said. “Moving forward, our industry needs certainty and deserves parity with other zero emissions equivalent technologies.”