The Propane Education & Research Council's Alternative Fuel Tax Credit was recently passed by the U.S. Congress as part of the Inflation Reduction Act, 2022.
PERC said it encourages fleet operators to take advantage of the tax credit.
Propane autogas fleet operators who apply for the tax credit will be able to claim a credit for every gasoline gallon equivalent of propane autogas purchased, or about 37 cents per gallon, according to PERC. The bill not only extends the credits through Dec. 31, 2024, but fleet owners can also apply for credits retroactively for any fuel purchases made in 2022. Tax-exempt entities that use propane autogas from an on-site fueling station for a vehicle fleet also qualify for the incentive.
“Thousands of fleets across the country rely on propane autogas every day for environmental sustainability, and these credits provide another opportunity for fleets to ensure they’re also realizing financial sustainability,” said Steve Whaley, director of autogas business development at PERC. “Even without the credits, propane autogas provides the lowest total cost-of- ownership. As an abundant and available energy source, propane autogas can make a difference in communities around the nation today.”
According to PERC, the new law also extends the Alternative Fuel Vehicle Refueling Property Credit, which allows operators to claim up to six percent or $100,000 of the cost of installing qualified alternative fuel vehicle refueling property, including propane autogas refueling equipment.
Originally posted on Metro Magazine