2020 Government Funding Package Addresses Expired Fuel Tax Credits, an Advocacy Priority for NAFA
Print this Article | Send to Colleague
On December 20, two "minibus" government funding bills for the fiscal year 2020 (H.R.1865 – Domestic, H.R.1158 – National Security) were signed into law by the President. The end-of-year funding deal averted a government shutdown and included several provisions known as policy riders.
Among these provisions, a reinstatement/extension of the federal tax credits for alternative fuels and biodiesel was included. The $0.50 per gallon alternative fuel tax credit (AFTC) for compressed natural gas, liquefied natural gas, propane, and other alternative transportation fuels and the 30 percent alternative fuel infrastructure tax credits were made retroactive to January 1, 2018, and extended through 2019 and the $1.00 per gallon tax credit for biodiesel was retroactively extended through 2022. The IRS will be issuing guidance on how to submit retroactive claims for the period during which the credits were expired.
Retroactive extension of the expired fuel tax credits was a significant advocacy priority for NAFA in 2019, as many fleets use the credits to justify the purchase of these fuels and vehicles. NAFA appreciates the many members who were involved in achieving this policy success and will continue to advocate for long-term extension of these incentives.
