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$0.50 / GGE tax credit maybe renewed and made retroactive for 2014

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  • $0.50 / GGE tax credit maybe renewed and made retroactive for 2014

    Here is the old post that talks about the expiration of the tax credit on 12/31/2013.

    http://www.cngchat.com/forum/showthr...ce-at-the-pump

    There is much talk in DC about extending 50+ tax credits that expired in 2013 to 2014. http://finance.yahoo.com/news/house-...185438098.html

    The problem for most CNG users is that this would be retroactive for for purchases in 2014. Also this could only be filed if you have a home fueling station and have established the paperwork with the IRS as a Alternative Fueler and pay your quarterly road tax on form 720. So in reality what will happen is that the fueling station will get to claim a $0.50 GGE tax credit for every GGE of CNG sold in the the year. The tax credit will likely only be extended and expire on 12/31/2014 and the CNG stations would not drop the price at the pump for you to share in the benefits.

  • #2
    Re: $0.50 / GGE tax credit maybe renewed and made retroactive for 2014

    for the most part I have seen that when the tax is in effect that the cng prices go down at the pump. as everyone here knows I think the tax breaks are wrong as why should you pay for my gas as a taxpayer anymore than I should pay for the drug addicts to have food stamps. every man is responsible for himself not the governments job to play Robinhood

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    • #3
      Re: $0.50 / GGE tax credit maybe renewed and made retroactive for 2014

      The federal alternative fuel tax credit (.50 rebate) and the infrastructure tax credit are all combined and the only way it can be reinstated is by extension. Which includes all alternate credits in the bill and forces retroactivity. I don't think the vehicle credit (IRS form 8910) is part of the bill that has the infrastructure credits (IRS form 8911) The only way to make a change is to introduce a new bill. Chances are the Senate won't want to rewrite the bill so it will either be extended or die.

      The issue with the current bill (as they extend it) is it is a 1 year credit. Business needs more than 1 year to plan.

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      • #4
        Re: $0.50 / GGE tax credit maybe renewed and made retroactive for 2014

        Originally posted by Amfuel View Post
        The federal alternative fuel tax credit (.50 rebate) and the infrastructure tax credit are all combined and the only way it can be reinstated is by extension. Which includes all alternate credits in the bill and forces retroactivity. I don't think the vehicle credit (IRS form 8910) is part of the bill that has the infrastructure credits (IRS form 8911) The only way to make a change is to introduce a new bill. Chances are the Senate won't want to rewrite the bill so it will either be extended or die.

        The issue with the current bill (as they extend it) is it is a 1 year credit. Business needs more than 1 year to plan.

        While I agree that more than a year to plan is usually necessary. In this case, the business has already realized the $0.50 GGE via increased pump prices (recall the price increase from $1.20 - $1.70 on 1/1/2014). If they make the tax credit retroactive than the fueling stations will get to add $0.50 GGE to the profits that they have already realized. There is no time for them to reduce the pump prices and share the savings with you.

        My case is a little different in that I run my car on propane (which also qualifies). I buy 3,000 gallons at a time and I file my quarterly form 720. I will be able to recapture the $0.50/gal for my purchases in 2014. If this passes my cost per gallon of LPG will drop to $0.85/gal = $1.07 GGE.

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