Green Fleet

NAFA Urges Action to Restore Federal Tax Credits for Biodiesel & Alternative Fuels

November 29, 2012

PRINCETON, NJ – The NAFA Fleet Management Association urges its members and other fleet managers affected by expired tax incentives for alternative fuels to contact their elected officials in Washington DC to call for an extension. The incentives include the $1.00 per gallon tax credit for biodiesel and the $0.50 per gallon alternative fuel tax credit for natural gas and propane throughout 2013. Fleets have been the early adopters of biodiesel and alternative fuel vehicles, but without these incentives they will have a hard time justifying the additional costs involved with the purchase of biodiesel and alternative fuel vehicles, according to a release from NAFA. 

“The uncertainty surrounding the incentives is now impacting vehicle purchase decisions and fuel planning by many fleets,” explained Executive Director Phillip Russo, CAE. “For many fleets, a decision by Congress on extending these important credits is needed quickly so that companies and government agencies can finalize their vehicle acquisitions for the current model year and project fuel costs for the coming year.”

The biodiesel credit is reflected in the price a fleet pays for fuel, and thus is a significant factor in projecting fuel costs. However, without the tax incentive, biodiesel is significantly more expensive than conventional diesel fuel – making it more difficult to make the business case for biodiesel. Further, the incentives for propane and natural gas help to offset the higher acquisition cost of alternative-fuel vehicles and help to ensure the long-term demand and commercial viability of alternative fuel technologies.

Fleet managers are reminded that they can reach their member of Congress by calling the congressional switchboard at (202) 224-3121 or by visiting the Senate or House websites. NAFA has prepared a sample letter here.

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