Incentives, Laws, and Programs
2020 Federal Budget Tax Extenders Package
The 2020 Federal Tax Extenders Package Includes Several Measures Important to the Clean-fuel Transportation Industry
Biodiesel and Renewable Diesel Federal Biodiesel Excise Tax Credit (BTC)
The budget extends this credit for five years, retroactively back to January 1, 2018 to the end of 2022. The credit is a $1 per gallon tax credit which can be deducted from an organization’s overall tax liability. This credit was first implemented in 2005 but was typically approved for short installments of about two years and many times only retroactively. This is the first time the credit has been approved for a duration of this length. Combined with national Renewable Fuel Standard (RFS) RIN’s and Oregon Clean Fuels Program credits, this tax credit should make biodiesel and renewable diesel very competitive with diesel.
Alternative Fuel Infrastructure Tax Credit
Included in the extenders package is an extension of the alternative fuel infrastructure tax credit. The measure provides a tax credit of up to 30 percent of the cost, not exceeding $30,000, of installing refueling equipment for electric, CNG/LNG/RNG, propane autogas, hydrogen, E85 and minimum B20 biodiesel. These incentives expired at the end of 2017. The bill not only extends the credits through 2020, but also enables credits retroactively for 2018 and 2019.
Alternative Fuel Excise Credit
An extension was also provided to the $0.50/gallon (GGE-gasoline gallon equivalent) alternative fuel excise credit. The excise credit covers CNG, LNG, RNG, propane autogas and liquefied hydrogen. Like the infrastructure credit the extension is retroactive for 2018 and 2019 and continues through the end of 2020. Although the measure is a tax credit, it includes a mechanism for public entities to receive and monetize the credit. Many Oregon school districts, transit agencies, and refuse fleets using the fuels referenced above have taken advantage of this credit in the past.
See below an upcoming webinar by NGVAmerica to help take advantage of these credits: https://www.eventbrite.com/e/alternative-fuels-tax-credit-what-next-registration-86946947661
Fuel Cell Motor Vehicle Tax Credit
A tax credit of up to $8,000 is available for the purchase of qualified light-duty fuel cell vehicles, depending on the vehicle's fuel economy. Tax credits are also available for medium- and heavy-duty fuel cell vehicles; credit amounts are based on vehicle weight. Vehicle manufacturers must follow the procedures as published in Notice 2008-33(PDF) to certify to the Internal Revenue Service (IRS) that a vehicle meets certain requirements to claim the fuel cell vehicle credit. Notice 2008-33 also provides guidance to taxpayers about claiming the credit. For more information about claiming the credit, see IRS Form 8910, which is available on the IRS Forms and Publications website. (Reference Public Law 116-94, Public Law 115-123, Public Law 114-113, and 26 U.S. Code 30B). Contact the U.S. Internal Revenue Service for additional information.
Win for rural electric co-ops
The bill included two provisions that co-ops around the country have been pushing for all year. The RURAL Act, which ensures that co-ops that accept government grants for storm restoration or broadband are not at risk of losing their tax-exempt status. The SECURE Act will lower the premiums that electric co-ops pay to the Pension Benefit Guaranty Corp. for low-risk defined benefit pension plans. See here:https://www.northernag.net/major-win-for-rural-electric-co-ops-in-funding-bill/
Advanced Biofuel Payment Program
What does this program do?
This program’s goal is to increase the production of advanced biofuels.
Who may apply?
Any entity that produces and sells advanced biofuel is eligible to apply. An advanced biofuel producer can be an individual, corporation, company, foundation, association, labor organization, firm, partnership, society, joint-stock company, governmental entities, schools and other types of educational facilities, group of organizations or a nonprofit entity that produces and sells an advanced biofuel.
For more information: https://www.rd.usda.gov/programs-services/advanced-biofuel-payment-program
- Advanced Biofuel Feedstock Incentives
- Advanced Biofuel Production Grants and Loan Guarantees
- Advanced Biofuel Production Payments
- Advanced Energy Research Project Grants
- Advanced Technology Vehicle (ATV) Manufacturing Incentives
- Airport Zero Emission Vehicle (ZEV) and Infrastructure Incentives
- Alternative Fuel Excise Tax Credit
- Alternative Fuel Infrastructure Tax Credit
- Alternative Fuel Mixture Excise Tax Credit
- Alternative Fuel Tax Exemption
- Alternative Fuel and Advanced Vehicle Technology Research and Demonstration Bonds
- Biodiesel Education Grants
- Biodiesel Income Tax Credit
- Biodiesel Mixture Excise Tax Credit
- Biomass Research and Development Initiative
- Ethanol Infrastructure Grants and Loan Guarantees
- Fuel Cell Motor Vehicle Tax Credit
- Idle Reduction Equipment Excise Tax Exemption
- Improved Energy Technology Loans updated 7/26/2016
- Low and Zero Emission Public Transportation Research, Demonstration, and Deployment Funding
- Natural Gas Vehicle (NGV) Weight Exemption
- Qualified Plug-In Electric Drive Motor Vehicle Tax Credit
- Qualified Two-Wheeled Plug-in Electric Drive Motor Vehicle Tax Credit
- Second Generation Biofuel Producer Tax Credit
- Second Generation Biofuel Production Property Depreciation Allowance
- Value-Added Producer Grants (VAPG)
Laws and Regulations
- Aftermarket Alternative Fuel Vehicle (AFV) Conversions
- Alternative Fuel Definition
- Alternative Fuel Definition - Internal Revenue Code
- Alternative Fuel Excise Tax
- Alternative Fuel Labeling Requirements
- Biofuel Compatibility Requirements for Underground Storage Tanks (USTs)
- Electric Vehicle Charging on Federal Property
- Fuel Economy Test Procedures and Labeling
- Greenhouse Gas (GHG) Reporting Requirement
- High Occupancy Vehicle (HOV) Lane Exemption
- Idle Reduction Technology Weight Exemption
- National Alternative Fuels Corridors
- Procurement Preference for Electric and Hybrid Electric Vehicles
- Renewable Fuel Standard (RFS) Program
- Tier 2 and Tier 3 Vehicle and Gasoline Sulfur Program
- Vehicle Acquisition and Fuel Use Requirements for Federal Fleets
- Vehicle Acquisition and Fuel Use Requirements for Private and Local Government Fleets
- Vehicle Acquisition and Fuel Use Requirements for State and Alternative Fuel Provider Fleets
- Vehicle Fuel Economy and Greenhouse Gas Emissions Standards
- Vehicle Incremental Cost Allocation
- Air Pollution Control Program
- Clean Agriculture USA
- Clean Cities
- Clean Construction USA
- Clean Ports USA
- Clean School Bus USA
- Congestion Mitigation and Air Quality (CMAQ) Improvement Program
- National Clean Diesel Campaign (NCDC)
- Pollution Prevention Grants Program
- Propane Education, Research, and Training
- SmartWay Transport Partnership
- State Energy Program (SEP) Funding
- Voluntary Airport Low Emission (VALE) Program
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