Friday, July 28, 2017
Washington, DC (July 27, 2017) — The National Propane Gas Association (NPGA) reports that a bipartisan group of U.S. representatives has introduced H.R. 3264, a bill that would extend several of the expired tax extenders. For the propane industry, the bill includes a five-year extension of the alternative fuel tax credit. 
The legislative effort to retain the credit is being led by Reps. Diane Black (R-Tenn.), Ron Kind (D-Wis.), David Valadao (R-Calif.), and Jim Costa (D-Calif.). The credit expired at the end of 2016 and has not been renewed. Under H.R. 3264, the credit would be $0.50/ gasoline gallon equivalent (GGE) of propane for 2017 and 2018, the same amount as 2016.
In 2019, the alternative fuel tax credit would decline to $0.37/GGE, which is 75% of the original credit amount. In 2020 and 2021, the credit would shrink again, this time to 50% of the original credit, to $0.25/GGE. This five-year phase down of the credit would bring it in line with other energy tax credits still on the books.
NPGA comments that it is encouraged by the introduction of the legislation. It shows that Congress is listening to the industry about the importance of the alternative fuel tax credit. Further, passage of H.R. 3264 would work to maintain parity in the energy tax space.
The legislative effort to retain the credit is being led by Reps. Diane Black (R-Tenn.), Ron Kind (D-Wis.), David Valadao (R-Calif.), and Jim Costa (D-Calif.). The credit expired at the end of 2016 and has not been renewed. Under H.R. 3264, the credit would be $0.50/ gasoline gallon equivalent (GGE) of propane for 2017 and 2018, the same amount as 2016.
In 2019, the alternative fuel tax credit would decline to $0.37/GGE, which is 75% of the original credit amount. In 2020 and 2021, the credit would shrink again, this time to 50% of the original credit, to $0.25/GGE. This five-year phase down of the credit would bring it in line with other energy tax credits still on the books.
NPGA comments that it is encouraged by the introduction of the legislation. It shows that Congress is listening to the industry about the importance of the alternative fuel tax credit. Further, passage of H.R. 3264 would work to maintain parity in the energy tax space.
