Almost 200 Urge Congressional Action on Clean Fuel End User Tax Credits for Fleets and End Users

Washington, DC – The Transport Project (TTP) today released a letter submitted to the leaders of the House Committee on Ways and Means and the Senate Committee on Finance.  Endorsed by close to 200 diverse businesses and organizations, the letter urges congressional support and swift extension of the Alternative Fuel Tax Credit (26 U.S.C. §§ 6426, 6427), and passage of the Renewable Natural Gas Incentive Act (S. 1252/H.R. 2596).

Each of these credits provides market-based, end-user incentives that supports investment in commercial vehicles moving goods, freight, and people powered by American fuel, American technology, and American innovation.

AFTC, which expired on December 31, 2024, and which provided a $0.50 per gallon credit for the use of CNG and LNG motor fuel, has a proven record of success since its enactment in 2005, providing investment certainty for public and private fleets as they transition to clean, domestically produced gaseous transportation fuels.

The RNG Incentive Tax Credit – introduced by Senators Thom Tillis (R-NC) and Mark Warner (D-VA) and Representatives Brian Fitzpatrick (R-PA) and Linda Sánchez (D-CA) through their Renewable Natural Gas Incentive Act (S. 1252/H.R. 2596) – would provide a $1.00 per gallon tax credit for motor vehicles that use renewable natural gas (RNG) to further support cleaner and more efficient transportation across America.  Full text of the legislation can be found HERE. 

The absence of these end user credits has created uncertainty and slowed deployment of new clean natural gas vehicles. Both credits are needed complements to the Section 45Z Clean Fuel Production Tax Credit, preserved and extended in the One Big Beautiful Bill Act of 2025  (Public Law 119-21). Together, these provisions create a balanced market framework: 45Z rewards producers for lowering carbon intensity, while end-user credits give fleets and fuel users a predictable and reliable way to offset the higher upfront costs of adopting alternative fuel vehicles and infrastructure. Without a complementary end-user credit, the benefits of 45Z are limited as fleets cannot directly claim the producer incentive.

Letter signers articulate that establishing and extending an end-user credit will stimulate demand through new medium- and heavy-duty commercial vehicle deployment, ensure the continued success of clean transportation initiatives, and help solidify the economic and environmental gains achieved in recent years.

The letter underscores the transformative impact of the credits, enabling transit agencies, school districts, freight haulers, and package delivery companies to invest in cleaner, commercially available RNG-fueled vehicles without compromising service or increasing fares.  Furthermore, the RNG Incentive Act incentivizes nationwide RNG production by encouraging farmers and ranchers to capture methane from animal waste, mitigating emissions that would otherwise be released into the atmosphere.

Commercial natural gas vehicles (NGVs) fueled by RNG are recognized for their ultra-low criteria emissions, providing a multitude of performance benefits. RNG, captured from various organic sources like agricultural, wastewater, landfill, or food waste, can contribute to carbon-negative results when used in on-road vehicles such as short- and long-haul trucks, transit buses, and refuse and recycling collection vehicles.

In addition to TTP, national trade association letter signers include American Biogas Council, American Public Gas Association, American Public Transportation Association, American Trucking Associations, Coalition for Renewable Natural Gas, and the National Waste & Recycling Association.

Read the letter HERE.

Access TTP’s Renewable Natural Gas Incentive Act one-pager 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.