Tax Credit for Alternative Fuel Motor Vehicles
If your business utilizes propane for motor vehicles, you can now get tax credits thanks to the Inflation Reduction Act of 2022. The new law extends the Alternative Fuel Tax Credit which is available to individuals and businesses that buy, sell and use propane in their motor vehicles.
Propane autogas fleet operators who apply for the tax credit will be able to claim a credit for every gasoline gallon equivalent of propane autogas purchased, or about 37 cents per gallon. Tax credits are available for any propane used for motor vehicles in 2022, through December 31, 2024.
The new law also extends the Alternative Fuel Vehicle Refueling Property Credit, which allows operators to claim up to six percent or $100,000 of the cost of installing qualified alternative fuel vehicle refueling property, including propane autogas refueling equipment.
“Thousands of fleets across the country rely on propane autogas every day for environmental sustainability, and these credits provide another opportunity for fleets to ensure they’re also realizing financial sustainability,” said Steve Whaley, director of autogas business development at PERC. “Even without the credits, propane autogas provides the lowest total cost-of-ownership. As an abundant and available energy source, propane autogas can make a difference in communities around the nation today.”
Now more than ever is the time to convert your fleet to propane. Not only for the tax credit, but because propane is more safe, more efficient and less expensive when compared to gasoline. If you are interested in converting your vehicle or fleet to propane, follow this link. (link)
All fleets should consult their tax advisers regarding any claims for credits or refunds.