U.S. Legislative Issues
NHTSA Seeks Comments on Underride Guards
The National Highway Traffic Safety Administration (NHTSA) has issued an Advance Notice of Proposed Rulemaking (ANPRM) on the rear-underride crash protection and visibility of single-unit trucks (SUTs). NHTSA says this ANPRM represents the "first step of a larger agency initiative to upgrade the standards for truck and trailer underride crash protection" informed by "significant input from the public and stakeholders on the estimated cost and benefits of safety strategies for these vehicles."
More specifically, the agency is requesting comments about requirements for rear impact guards on new SUTs and reflective material on the rear and sides of these vehicles. Rear impact guards would provide underride protection to occupants of vehicles crashing into the rear of trucks and reflective material would improve visibility of these vehicles to other motorists to help drivers avoid these crashes in the first place. NHTSA estimates that a requirement for rear impact guards on SUTs could save five lives and prevent 30 injuries each year, and would cost approximately $669 million to equip approximately 342,000 vehicles. A requirement for reflective tape on SUTs could save up to 14 lives per year with a cost of approximately $30 million annually, for approximately 579,000 new SUTs, according to agency estimates.
Senate Finance Committee Approves Package of Energy Tax Extenders
On July 21, 2015, the Senate Finance Committee voted to approve a package of extensions of dozens of popular business tax credits and deductions, often referred to as "tax extenders."
Tax extensions of greatest concern to fleets include the following:
- Biodiesel: The bill extends the income tax credit, excise tax credit and payment provisions for biodiesel and renewable diesel for two years, through December 31, 2016.
- Propane and CNG: The bill extends through 2016 the $0.50 per gallon alternative fuel tax credit and alternative fuel mixture tax credit for propane and natural gas.
- Refueling Infrastructure: The bill extends for two years, through 2016, the 30 percent investment tax credit for alternative vehicle refueling property, up to $30,000. Eligible refueling property includes fuel pumps for ethanol, biodiesel, liquefied hydrogen, and compressed or liquefied natural gas.
- Bonus Depreciation: The bill extends the 50-percent additional first-year depreciation deduction for two years, through 2016.
The package’s ultimate fate this year is unclear. Majority Leader Mitch McConnell (R-KY) hasn’t said when the full Senate will vote on it, and the House has so far taken a different approach, opting to pass individual bills to make permanent certain tax provisions instead.
You Can Help Keep Alternative Fuel Tax Incentives
After Labor Day, Congress will decide whether to extend the federal tax incentives for the use of biodiesel, propane, and natural gas. These incentives lapsed at the end of 2014.
During the next several weeks, NAFA will be making the case to Congress that these incentives should continue.
If you have taken advantage of any or all of the federal incentives listed below, please provide a brief case study or example of how these tax incentives enabled you to add alternative fuel vehicles to your fleet. Your first-person documentation will clearly illustrate how these federal tax credits have influenced migration to alternative fuels by NAFA Members. Click this link to go to to the case study response form.
- Alternative Fuel Excise Tax Credit - $.50 per gallon alternative fuel tax credit for compressed natural gas and propane when used as a vehicle fuel.
- Biodiesel Production and Blending Tax Credit – Qualified biodiesel producers or blenders are eligible for an income tax credit of $1.00 per gallon of pure biodiesel or renewable diesel produced or used in the blending process.
- Alternative Fuel Infrastructure Tax Credit – A 30 percent credit for installing vehicle refueling property for alternative fuel, such as pumps for ethanol or liquefied natural gas.
Senate to Resume Work On Long-Term Highway Bill After August Recess
Following House passage of an $8 billion five-month highway patch last week, the Senate opted to move forward with its own transportation proposal, which provides for a six-year highway reauthorization and three years’ worth of funding paid for with a series of offsets derived from civil motor vehicle safety penalties, tax compliance, fees and receipts, and other unused funds.
The Senate’s goal was to wrap up the process before July 31, 2015, the day in which the House adjourns for August recess and funding for the Highway Trust Fund (HTF) is set to expire. The Senate bill faced a tough road, however, as various concerns related to its underlying safety title, funding provisions, and unrelated amendments remained. On July 28, 2015, House and Senate leadership announced their intention to postpone work on a long-term bill and to take up a temporary patch that would provide funding for the HTF through October 28, 2015 instead.
