On Tuesday night, December 16, the Senate approved legislation sent from the House that extends the life of a number of tax breaks through tax year 2014. Included in the package are a number of credits important to fleets, of which are outlined below.
Alternative Fuel Excise Tax Credit – $.50 per gallon alternative fuel tax credit for compressed natural gas and propane when used as a vehicle fuel.
Biodiesel Production and Blending Tax Credit – Qualified biodiesel producers or blenders are eligible for an income tax credit of $1.00 per gallon of pure biodiesel or renewable diesel produced or used in the blending process.
Alternative Fuel Infrastructure Tax Credit – A 30 percent credit for installing vehicle refueling property for alternative fuel, such as pumps for ethanol or liquefied natural gas.
Bonus Modified Accelerated Cost Recovery System (MACRS), commonly referred to as Bonus Depreciation – allows extra depreciation to be taken for 50 percent of a truck’s purchase price, with an extra bonus depreciation deduction of up to $8,000 for automobiles, light trucks, vans, and SUVs.
President Obama is expected to sign the tax extenders legislation within days. As mentioned, the measure is only applicable to the 2014 tax year, which means the credits will not be renewed for tax year 2015 unless the new Congress takes the matter up again.
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