Congressional agreement features alternative fuel tax credit extensions

January 2, 2013 By    

Alternative fuel tax credits that expired at the end of 2011 were renewed as part of a congressional agreement on tax-related issues, according to a legislative alert from the National Propane Gas Association (NPGA).

The alternative fuel tax credit and the alternative fuel infrastructure tax credit were extended through 2013 and also were made retroactive for taxable year 2012. The fuel credit amounts to 50 cents per gallon of propane and includes propane used in forklifts. The infrastructure credit is for 30 percent of the fueling equipment’s cost, up to $30,000.

“The extension of the alternative fuel tax credit and the refueling infrastructure tax credit will help get more propane autogas vehicles on the road and encourage fleet managers to strongly consider alternative fuel options before making a decision,” says NPGA President and CEO Rick Roldan in an association press release.

Propane also benefits from tax credits renewed in the residential market. The energy efficient existing homes tax credit allows $150 for a qualified propane furnace and $300 for a qualified propane water heater, NPGA notes. The energy efficient new homes tax credit provides up to $2,000 to an eligible contractor who constructs a qualified energy efficient new home.

Also of note, changes to the estate tax were made permanent under the deal – a $5 million per-person exemption (adjusted annually for inflation) and a top tax rate of 40 percent (up from 35 percent).

President Barack Obama is expected to sign the legislation.

About the Author:

Kevin Yanik is the senior editor of LP Gas Magazine. Contact him at kyanik@northcoastmedia.net or 216-706-3724.

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