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Status of Federal Tax Credits - 2012

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  • Status of Federal Tax Credits - 2012

    Status of Federal Tax Credits
    In 2011, Congress had a very difficult time reaching agreement on numerous issues, which, unfortunately, included the NAT GAS Act and extension of existing federal incentives to promote NGVs (such as the fuel excise tax and infrastructure tax credits). So, for now, the federal incentives to encourage the use of NGVs (i.e., the vehicle credit, the fueling infrastructure credit and the 50-cent fuel credit) have all expired (the vehicle credits previously expired at the end of 2010).

    However, while Congress did not extend our tax credits, it previously enacted bonus depreciation provision that allows companies in 2012 to expense 50 percent of the cost of new capital equipment -- including motor vehicles and fueling equipment. This provision may be useful to businesses that invest in new NGV-related equipment in 2012.

    Persons intending to take advantage of the bonus depreciation provisions should consult with their tax advisors to understand how these provisions work and determine whether any limitations exist. The IRS in Revenue Ruling 2011-11 has issued guidance addressing the limitations that exist with respect to passenger cars, and some trucks and vans.

    The Senate is now scheduled to return on January 17th, while the House is scheduled to return on January 23rd. Not only will Congress have to deal with last year’s unresolved issues but also important tax provisions -- such as the corporate tax credit for research, a fix for the Alternative Minimum Tax (ATM), and, we hope, renewal of incentives to promote NGVs. For more information contact Paul Kerkhoven at 202.824.7363 or [email protected]

  • #2
    Re: Status of Federal Tax Credits - 2012

    has anything got done on this ??? all this time and kids can not play well with each other ! and will want our vote !!