|
As we approach the end of 2024, Congress has adjourned for the holidays without passing a tax extenders package, which has historically been a year-end priority. This means that the current extension of the Alternative Fuel Tax Credit (AFTC)—set to expire at the end of 2024—remains in limbo.
While Congress has expressed its intent to let the AFTC transition into the Clean Fuel Production Credit starting in 2025, the National Propane Gas Association (NPGA) is committed to advocating for an extension. The AFTC currently provides a 37 cents per gallon credit for propane used in motor vehicles, including forklifts, offering a vital incentive for the adoption of propane as an alternative fuel in the transportation sector.
A new Congress will be seated on January 3, and there may be opportunities to include an AFTC extension in budget reconciliation bills early in the legislative session. Budget reconciliation allows for legislation to pass the Senate with a simple majority vote, bypassing the 60-vote filibuster threshold.
However, securing an extension will be challenging. Republican lawmakers are expected to focus on extending or making permanent the 2017 tax cuts, which could complicate efforts to reauthorize the AFTC without finding offsets in government spending or revenue.
Despite this, NPGA is actively working with allies on the House Ways and Means Committee and the Senate Finance Committee to highlight the critical role this credit plays in promoting alternative fuels like propane.
The fight for an AFTC extension is far from over, and NPGA remains dedicated to advocating for the extension on Capitol Hill.
| 
