TTP JOINS LARGE GROUP CALLING ON CONGRESS TO EXTEND CLEAN FUEL TAX CREDITS SET TO EXPIRE

Washington, DC – The Transport Project today joined 36 other trade organizations in calling on Congressional leaders to consider and pass a short-term tax extender package before adjourning the 118^th Congress at the end of the calendar year. The organizations represent a broad spectrum of energy and transportation providers, consumers, and agriculture asking to extend existing longstanding tax policies set to expire, including:

• IRC § 40A – Biodiesel tax credit
• IRC § 40B – Sustainable aviation fuel tax credit
• IRC § 40(b)(6) – Second generation biofuel producer credit
• IRC § 48(c)(1) – Qualified fuel cell investment tax credit
• IRC § 48(c)(7) – Qualified biogas investment tax credit
• IRC § 6426, 6427 – Alternative fuel tax credit

“Extending these clean fuel tax credits is important to preserve momentum and ensure business and market certainty since there is little clarity on what the new 45z clean fuel producer tax credit will look like and when those details will be available,” said Daniel Gage, President of The Transport Project.  “The Alternative Fuel Tax Credit is awarded at the dispenser, directly benefitting fleets and fuelers that rely on these credits to incentivize their transition to ultra-low-to-no-carbon commercial vehicle technologies like renewable natural gas derived from waste.”

The Inflation Reduction Act of 2022 last extended these policies through December 31, 2024, when a newly created Section 45Z clean fuels credit and other tax provisions were set to take effect and replace them starting January 1, 2025. The Treasury Department, however, has not yet implemented final regulations for any of these policies.

Transitioning fleets to renewable natural gas (RNG)-fueled vehicles can save money and reduce emissions and deploys new, affordable, cleaner, and compliant technology without delay and without compromising business operations. RNG vehicles are powered by American fuel, American technology, and American innovation; no commercially available, reliable, and scalable heavy-duty powertrain solution runs cleaner than RNG.

The group letter called for Congressional action to preserve stability and predictability and prevent disruption in the motor fuel markets. A copy of the letter is available HERE.

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The Transport Project is a national coalition of roughly 200 fleets, vehicle and engine manufacturers and dealers, servicers and suppliers, and fuel producers and providers dedicated to the decarbonization of North America’s transportation sector.  Through the increased use of gaseous motor fuels including renewable natural gas and hydrogen, the United States and Canada can help achieve ambitious climate goals and greatly improve air quality safely, reliably, and effectively without delay and without compromising existing commercial business operations.  Find out more at: transportproject.org.