The American Power Act, to be released this week, would be a major boon for the natural gas vehicle market. More specifically, the Act would:
- extend and double for 10 years the alternative fuel credits for purchasing natural gas vehicles that have a weight greater than 8,500 pounds;
- extend and double the credit for vehicles weighing less than 8,500 lbs for commercial fleet vehicles of at least ten cars and purchases of at least three natural gas vehicles;
- make it easier for hybrid natural gas/conventionally-fueled vehicles to qualify for credits;
- assist states and local governments issue tax credit bonds to finance natural gas vehicle projects (up to $3 billion in federal assistance);
- allow 100% of the cost of a natural gas vehicle manufacturing facility placed in service before Jan. 1, 2015 to be expensed and to be treated as a deduction in the taxable year in which the facility was placed in service;
- direct the Government Services Administration to study how the Federal fleet could increase the number of light-, medium-, and heavy-duty natural gas and liquefied petroleum gas vehicles in the fleet.
Companies that stand to benefit greatly include natural gas vehicle and component suppliers such as Cummins, Westport Innovations, Clean Energy Fuels, Honda and others.
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