President Obama Signs the Tax Prevention Act of 2014 into Law

    On Dec. 19, President Obama signed the Tax Increase Prevention Act of 2014 into law, 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. 

    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 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 signed 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 Orrin Hatch, the incoming Chairman of the Committee, stated that he hopes to achieve permanency for these tax credits.

    President Obama also signed the National Defense Authorization Act for fiscal-year 2015. This legislation, which passed the House in November and the Senate earlier this month, contains a provision modifying the federal Corporate Average Fuel Economy (CAFE) program. In the past, original equipment manufacturers could earn credits for compliance with the CAFE program by producing bi-fuel vehicles, subject to a cap in the number of credits. However, The new NDAA provision removes the credit cap for bi-fuel natural gas vehicles.

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