Natural gas tax credit extended through 2021

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As part of the combined omnibus spending and COVID-19 stimulus package approved by Congress in late December, the Alternative Fuels Tax Credit (AFTC) and the Alternative Fuel Vehicle Refueling Property Credit have been extended through Dec. 31, 2021.

The AFTC provides a $0.50 fuel credit/payment for the use of natural gas as a transportation fuel and the property credit is a 30%/$30,000 investment tax credit for alternative vehicle refueling property. The credit is meant to allow transit agencies to continue to invest in cleaner and commercially available natural gas buses without reducing service or increasing fares.

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