HUNDREDS SIGN LETTER IN SUPPORT OF $0.50/GALLON AFTC EXTENSION

Washington, DC – The Transport Project and the National Propane Gas Association today submitted a letter signed by 400 member companies 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 letter focused on extending the $0.50/gallon Alternative Fuel Tax Credit (AFTC) [IRC § 6426, 6427] which originally took effect October 1, 2006.

“Extending the Alternative Fuel Tax Credit helps replace America’s fleet of heavy-duty trucks for newer, cleaner technology,” said Daniel Gage, President of The Transport Project.  “The AFTC 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 trucks and buses fueled by renewable natural gas derived from waste.”

Extending and expanding the Alternative Fuel Tax Credit is among the most cost-effective investments the federal government can make to support fleets and make this transition. Renewable natural gas trucks:

• Are one-half the cost of battery electric alternatives
  • Fleets get more clean trucks on the road for the same investment
• Rely on an existing, established heavy-duty fueling infrastructure coast-to-coast
  • Benefit from a proven and mature network of servicers and suppliers
• Can achieve carbon-negativity when fueled with RNG
  • Almost 80 percent of all natural gas motor fuel dispensed is derived from renewable sources

Unlike other clean fuel incentives and credits, the AFTC is end user focused.  Awarded at the dispenser, heavy-duty fleets of all sizes and application benefit, including public and municipal fleets. The AFTC lowers overall fleet fueling costs, contributing to an important earlier return on investment (ROI) per vehicle and encouraging continued investment in clean technologies and fleet turnover.

The Inflation Reduction Act of 2022 last extended the AFTC 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, thus necessitating an extension of existing clean fuel tax credits including the AFTC.

Transitioning fleets to 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.

Read how fleets can achieve a carbon-negative transportation outcome today with renewable natural gas HERE.

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

###

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.