Thinking of entering the compressed natural gas (CNG) space in the new year? The leading alternative fuel is more affordable than ever thanks to the Alternative Fuels Tax Credit (AFTC) Extension Act of 2019, which was recently included as part of the year-end spending bill.
Station owners across the United States will receive a $0.50 per gallon excise tax credit on alternative fuel used as motor fuel, for compressed natural gas (CNG), liquefied natural gas (LNG), and renewable natural gas (RNG) through the end of 2020.
The tax credit, which lapsed in 2017, can also be retroactively applied to 2018 and 2019 fuel purchases. The claims process to receive rebates from previous years will begin in March.
“The Alternative Fuels Tax Credit is a huge win for anyone currently using CNG and a perfect incentive for folks who are thinking about entering the natural gas space,” said Jeff Bonnema, VP of Fleet Operations.
CNG is an alternative fuel comprised mostly of methane and compressed to less than 1% of its volume at standard atmospheric pressure. This odorless, colorless, and tasteless fuel source is drawn from gas wells in conjunction with crude oil production.
Natural gas vehicles burn 90% cleaner than current EPA standards and the alternative fuel costs less than gasoline or diesel. RNG is also the only carbon negative transportation fuel available, as well as the only proven alternative fuel available now for heavy duty vehicles.