Recently introduced legislation aims to extend the 50 cents per gallon excise tax credit on alternative fuel used in vehicles, which includes compressed, liquefied, and renewable natural gas.
The Alternative Fuel Tax Credit (AFTC) Extension Act of 2019 was introduced by Reps. Lizzie Fletcher (D-TX) and Markwayne Mullin (R-OK).
“This tax credit encourages investments in cleaner fuel options for vehicle use,” Fletcher said. “The AFTC incentivizes innovation of alternative fuels, like natural gas, which leads to lower costs and reduced greenhouse gas emissions through these cleaner-burning fuels. I thank Congressman Mullin for joining me to introduce this legislation, and I look forward to continuing our work on this important issue.”
There are more than 175,000 natural-gas vehicles in the United States.
“Natural gas is abundant in our country, and natural-gas vehicles produce 30 percent less emissions than gasoline,” Mullin said. “The AFTC helps encourage consumers to choose cleaner-burning fuels while supporting domestic energy production.”
Since 2008, the natural gas-production industry has spiked 60 percent. The sector contributes approximately $385 billion to the national economy annually and supports nearly 3 million jobs, according to American Petroleum Institute estimates.
The bill is under consideration by the House Ways and Means Committee.