2014 Federal excise tax credit extension passed by House and Senate

    Tax Credits Retroactively Reinstated for 2014 but not for 2015

    On Tuesday night, the U.S. Senate passed the Tax Increase Prevention Act of 2014, which among its provisions, offers an extension of the federal $0.50/gallon alternative fuels excise tax credits and a return of the 30% alternative refueling infrastructure tax credits. 

    The House passed the bill, H.R.5771, on Dec. 3. President Obama is expected to sign the legislation.

    On Dec. 3, the House approved Amendments to the Internal Revenue Code that would extend certain expiring tax provisions relating to the energy sector in H.R. 5771, Subtitle C: Energy Tax Extenders. The excise tax credits cover compressed natural gas (CNG), liquefied natural gas (LNG), propane autogas and other alternative transportation fuels. The incentive last expired at the end of 2013, and it has not been extended into this year.

    H.R.5771 reinstates the $1,000 home refueling tax credit for 2014, and the 30% alternative refueling infrastructure tax credit.  The credit, that is capped at $30,000, is an incentive designed to promote building CNG and other refueling stations.

    President Obama is expected to sign the legislation to extend the credits for 2014, making all alt-fuel purchases made this calendar year eligible for the credit. However, Congress did not opt to extend the credits into 2015 and beyond. Taking that into consideration, the Senate Finance Committee will have to start negotiations again when they return in January, but Hatch, the incoming Chairman of the Committee, stated that he hopes to achieve permanency for these tax credits.

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