Tax Credits

A federal income tax credit for the purchase of new natural gas vehicles (NGVs) expired at the end of 2010. The credit ranged from $2,500 to $32,000, depending on the size of the vehicle and could be taken by the buyer or the seller (in the case of non-profit or public entities who cannot use a tax credit). The tax credit did not apply to the purchase of used or existing CNG vehicles or to bi-fuel vehicles.

Congress may take up legislation that could provide rebates for NGV purchases beyond 2010. The “Clean Energy Jobs and Oil Company Accountability Act,” accelerates the introduction and use of natural gas vehicles (NGVs) and offers $3.8 billion in rebates to buyers of NGVs, from passenger cars to heavy-duty vehicles. The legislation specifically provides that the rebates would equal 90 percent of the incremental cost of a qualified natural gas vehicle and that the vehicles must go into service by 2013.

In all cases, purchasers of an NGV should ask the seller or manufacturer for information on the value of tax credits or rebates for their NGVs. Or you can contact a Shift to CNG outreach consultant at info@shifttocng.com for more information on tax credits and rebates.

 

Tax Credits/Rebates Through 2010

Vehicle Size

Through the end of 2010

Future Proposed Legislation

Light-duty
(up to 8,500 lbs)

Dedicated CNG: up to $4,000
Bi-fuel: None

Dedicated CNG: up to $10,000 Bi-fuel: up to $7,500

Medium-Duty
(up to 14,000 lbs)

Dedicated CNG: $8,000
Bi-Fuel: None

Dedicated CNG: up to $16,000 Bi-fuel: up to $8,000

Medium-Heavy-Duty
(up to 26,000 lbs)

Dedicated CNG: $20,000
Bi-fuel: None

Dedicated CNG: up to $40,000
Bi-fuel: up to $20,000

Heavy-Duty
(over 26,000 lbs)

Dedicated CNG: $32,000
Bi-fuel: None

Dedicated CNG: up to $64,000 Bi-fuel: up to $32,000