Tax Credit for Natural Gas-Fueled Cars May Be Doubled
bloomberg.com
By Daniel Whitten
July 8 (Bloomberg) -- Tax incentives for buying vehicles fueled by natural gas would be doubled in size and extended for a decade under legislation being introduced by U.S. Senate Majority Leader Harry Reid of Nevada.
The credits, which can be used to cover 80 percent of the added cost to buy natural gas-fueled vehicles over conventional automobiles, would jump to as high as $12,500 for passenger cars and light trucks and as much as $64,000 for higher weight-class vehicles, according to a summary of the legislation.
The bill would also expand and extend tax incentives for purchases of natural gas used as a vehicle fuel and for the installation of refueling stations. The credits were set up as part of a broad energy law passed in 2005 to help secure energy supplies and lower costs, issues that are back in the forefront of Congress following record-high oil and gas prices in 2008.
“We saw last summer how the wild fluctuations in oil prices helped to wreck our economy,” said Senator Robert Menendez, a New Jersey Democrat, who is sponsoring the latest measure. “By making it easier and cheaper to own a vehicle that runs on natural gas, we can help families save money on energy, create new manufacturing jobs and clean our air.”
Energy investor T. Boone Pickens will join Reid at a news conference today to promote the legislation. Pickens, who is pushing the use of natural gas in automobiles as a way to end U.S. dependence on foreign oil, said an extension of the tax credits will pass Congress.
“I think it will pass right after the August recess,” Pickens said yesterday in a Bloomberg Television interview.
A similar measure was introduced in the House this year.
Refueling-station tax credits would be doubled to as much as $100,000, according to the Senate bill summary. The legislation also includes a provision that would allow businesses to claim 100 percent of the cost of building a manufacturing facility placed in service before Jan. 1, 2015.
To contact the reporter on this story: Daniel Whitten in Washington at dwhitten2@bloomberg.net.
Last Updated: July 8, 2009 11:28 EDT |
