Legislative Update: Alt Fuel Tax Incentives
December 20, 2010
AltFuel Tax Incentives
Bill passes Senate, then House, likely to be signed by President today
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|Dear Virginia Clean Cities Stakeholder,
We just wanted to pass a note that the tax legislation approved today represents significant continued investments in alternate fuels and for domestic biofuel production.
The legislation includeed several provisions to reduce oil dependence by encouraging biofuel production, including one that extends the current 45 cent per gallon tax credit for ethanol through 2011. The bill also extends, through 2011, $1 dollar per gallon tax credits for biodiesel production and diesel fuel created from biomass, as well as a 10 cent per gallon tax credit for agri-biodiesel producers.
It is a great success that the tax credit for alternate fuels, such as Natural Gas and Propane of .$50/gallon also came through, retroactive to January 1. 2010.
The bill also included investments in alternative vehicle refueling infrastructure. The bill extends through 2011 the 30% investment tax credit for infrastructure that supports alternative fuels like ethanol, hydrogen, biodiesel and natural gas.
These reinstated tax credits should lower the cost of alternative fuels throughout Virginia and serve as a helpful incentive for cleaner domestic fuels.
While this legislation also included many other controversial and costly items, in this holiday season it is good to know that alternative fuels have support. The President is expected to sign this legislation at 3:50 today.
Director, Virginia Clean Cities