Lawmakers Play Nice with Alternative Fuels

 In Electric Vehicle News

The call from the Governor is in (actually, Congress and the President), and so are incentives for alternative fuels during 2011.

Rather than regurgitating what you may have already read in Automotive Fleet or other sources, I’ll give you the short list – in terms of what’s applicable to fleet operators – of what’s been extended for an additional year by the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010:


  • WHAT: Credits for installing electric vehicle charging stations.
  • WHO: Residential and commercial property owners.
  • HOW MUCH:  Residential owners can receive a tax credit up to $1,000 while commercial property owners can qualify for a tax credit for up to $30,000.
  • WHY IT MATTERS: This may be a lucrative incentive for companies considering charging stations for electric vehicles or plug-in hybrids.



  • WHAT: Fuel credit for propane autogas, CNG, and LNG when used as a transportation fuel.
  • WHO: Retailer or end-user (whichever entity is liable for reporting and paying the federal excise tax on the sale or use of the fuel in a motor vehicle). Tax exempt entities such as state and local governments that dispense qualified fuel from an on-site fueling station for use in vehicles also qualify for the incentive. To sweeten the deal even further, it’s retroactive back to January 1, 2010 (originally expired at the end of 2009) and a one-time claim can be filed for 2010.
  • HOW MUCH: $0.50 per gallon or gasoline gallon equivalent.
  • WHY IT MATTERS: This incentive encourages the production and use of alternative fuels.



  • WHAT: Credits for propane autogas and natural gas fueling infrastructure.
  • WHO: Residential and commercial property owners.
  • HOW MUCH: 30 percent of the cost of qualified equipment up to a maximum of $30,000 and $1,000 for non-business property. Credit is applicable to multiple locations.
  • WHY IT MATTERS: This may be a lucrative incentive for companies considering fueling stations for alternative fuel vehicles.


Also included in the bill were extensions for alternative fuel credits available (ethanol, biodiesel) to producers/blenders and sellers. 

Though government spending can be a touchy topic when it comes to politics, these incentive programs are good news for the expansion of electric and alternative fuel use and infrastructure! Alternative fuel applications need to make sense for the organization with or without subsidies, but incentives make earlier adoption a much easier case to make to senior management.

We’ll see who takes advantage of them in 2011.

Recent Posts