NGVAmerica Releases Updated AFTC Filing Fact Sheet
The $0.50/Gallon Natural Gas Federal Tax Credit Extended Through 2021
Washington DC -- After championing the inclusion of an extension of the Alternative Fuels Tax Credit (AFTC) in a combined year-end FY 2021 Omnibus spending and Covid-19 stimulus package in late December, NGVAmerica today released updated guidance on filing for the federal tax credit.
The Alternative Fuels Tax Credit – a $0.50 fuel credit/payment for the use of natural gas as a transportation fuel – and the Alternative Fuel Vehicle Refueling Property Credit – a 30 percent/$30,000 investment tax credit for alternative vehicle refueling property – are extended through December 31, 2021.
With this credit, America’s transit agencies can continue to invest in cleaner, commercially available and proven natural gas buses without reducing service or increasing fares, school districts can provide exhaust-free rides to school by replacing their dirty legacy fleets, and freight haulers and package delivery companies can afford to replace aging diesel trucks with the cleanest heavy-duty truck on the market, which runs entirely on natural gas.
The Alternative Fuels Tax Credit was last extended in 2019 for the 2018, 2019, and 2020 calendar years and applies to all classes of natural gas vehicles fueled by geologic and renewable CNG and LNG. Its continuation is important to provide investment certainty for fleets of all shapes and sizes working to reduce their environmental footprint and address clean air and climate change sustainability goals.