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This week, Congress passed the Fiscal Year 2020 appropriations package. A host of tax extenders were included in the package, including a renewal of the Alternative Fuel Tax Credit (AFTC) and Alternative Fuel Infrastructure Credit. The bill passed with broad bipartisan support.

The AFTC provides a $0.50 per gallon of gas equivalent tax credit on the sale of compressed natural gas (CNG) and liquefied natural gas (LNG) for transportation. The credit was last retroactively extended for tax year 2017 in the 2018 Bipartisan Budget Act, but was not renewed for 2019. This year’ spending agreement retroactively renews the AFTC for 2018 and 2019, as well as through 2020. APGA pushed for the extension of these credits.

The credits are key for the continued growth of natural gas vehicles. APGA President and CEO Bert Kalisch offered the following statement: “The combination of job creation, domestic availability of the fuel source, and emissions reductions makes this a critical time to get more Natural Gas Vehicles (NGVs) on the road. APGA believes that the incentives and opportunities that have been extended to electric vehicles under current tax policy should be extended to NGVs, and we support the extension of these important tax credits.”

For questions on this article, please contact Doug MacGillivray of APGA staff by phone at 202-464-2742 or by email at dmacgillivray@apga.org.