Congress approves legislation extending alternative fuels tax credit

Congress passed combined tax-relief and government funding legislation that has positive implications for the propane industry, the National Propane Gas Association (NPGA) announced.

According to NPGA, the legislation features a two-year extension of the alternative fuels tax credit. This refundable credit remains at 50 cents per gallon for the remainder of 2015. In 2016, the credit will be adjusted to 36 cents per gallon because of a changed energy-content calculation of the excise tax on propane autogas, NPGA reports.

A two-year extension of the refueling property credit is also part of the legislation. This allows for a 30 percent credit of costs associated with the installation of refueling stations, according to NPGA. The credit applies to purchases up to $30,000.

According to NPGA, two other legislative components that impact the propane industry were included in the package: the permanent extension of Section 179 small business expensing and a five-year extension of bonus depreciation. These provisions will bring greater financial certainty to the small businesses in the propane industry that are planning future investment projects, NPGA says.

The legislation, which the president signed, also provides funding for Department of Energy research on propane direct injection engines and small-scale combined heat and power projects.