We made some progress!! Tax Credits Extended

Last Thursday, the President signed into law HR 4853, the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010. Earlier in the week, the Senate passed the bill by a vote

81 to 19 and the House of Representatives passed the bill 277-148. This tax bill was the result of negotiations between President Obama and Republicans, and will extend the 2001 and 2003 income

tax cuts for all families for two years and unemployment benefits for one year.

Among these and other major provisions, the bill includes some major provisions that are very beneficial to the NGV industry:

The bill extends until December 31, 2011 the $0.50 per gallon equivalent fuel credit for CNG and LNG when used as a transportation fuel. As expected, the extension is made retroactive back to January

1, 2010. The $0.50 tax credit for CNG and LNG had expired at the end of 2009. The tax bill includes special instructions directing the Treasury Department to develop procedures allowing for a one-time

Fueling Station (Infrastructure) Credit Was Extended

The bill extends for one year the tax credit for natural gas fueling infrastructure. The extension is for 30 percent of the cost of qualified equipment up to a maximum of $30,000.00 and $1,000 for non-business

property (i.e home fueling) The tax credit is 30 percent and not 50 percent because Congress extended the tax credits a originally enacted in 2005-- not according to the increased level enacted as part of

the 2009 TARP legislation. The bill also allows for 100 percent expensing of the infrastructure costs, and it is our understanding that the tax credit may be taken along with 100 percent expensing. This means

that a taxpayer could claim up to a $30,000 tax credit for new natural gas fueling infrastructure and then expense the remaining cost (cost of station less tax credit of $30,000.00) all in the first year. The

100 percent expensing provision is good for equipment placed in service after Sept 8, 2010.

Despite repeated and substantial effort by many with Congress, the income tax credit for the purchase of natural gas vehicles was not extended. However, there is some good news relating to tax treatment

of new NGVâ€™s. The bill allows taxpayers to expense 100 percent of the cost of new capital expenditures. This means that a business purchasing NGVâ€™s will be able to write-off the full cost of buying such

vehicles in the first year instead of depreciating them over five or more years. The expensing provisions does not help tax-exempt entities or private consumers. who purchase NGVâ€™s (unless they can depreciate

them). The 100 percent depreciation provision also applies to equipment placed in service after Sept 8, 2010. We, The Arizona Natural Gas Coalition and NGV America thank all the people and companies

that helped lobby for these extensions and the Nat Gas Act. Plans are being made to introduce a new Nat Gas Act once the new Congress convenes.

To qualify for a alternative fueled vehicle tax credit, it must be purchased before Dec 31, 2010 (New dedicated NGV)

To qualify for the higher infrastructure credit, equipment must be purchased before Dec 31, 2010 (Example- home fueling unit $2000.00 credit before end of year, $1000.00 in 2011)

Although Arizona has been making some progress in solar and wind, natural gas vehicle manufacturing and support companies and employment are still exiting the state due to no real tax incentives or credits

for NGVâ€™s or infrastructure. For this issue, you need to talk to your state legislators! We will start pushing this again in January and hope you will raise your voice also, before we see four dollar gasoline again $$!

Natural gas can save our state from the financial impact of energy cost escalation as the world and our Arizona economy improves.

(Above legislative information provided by NGV America, Contact Paul Kerkhoven for more information- 202-824-7363 or pkerkhoven@ngvamerica.org)

Honda USA opens up CNG Civic GX sales to all dealers

Next year Honda USA will open up the opportunity to be AFV certified to all Honda dealers in the USA, which will allow them to offer the Honda GX to their customers! Currently there are only 133 certified AFV Honda dealers.

Two Arizona dealers are already AFV certified and sell the natural gas Honda GX- San Tan in Chandler and Chapman in Tucson. Honda obviously seeâ€™s the opportunity and expansion of NGVâ€™s in America accelerating.

This coming year will see an unprecedented number of natural gas vehicles available in America. Unfortunately Arizona residents will probably have to go to other states to get them since our state government is not seen as NGV friendly.

Raise your voice, we can all make a difference!!

If we donâ€™t see you before Christmas, we wish you and yours a very joyous holiday season and a happy and prosperous new year!!

Chairman, Arizona Natural Gas Coalition
480-461-5166
Mesa, Arizona