Monday, October 27, 2014
Thursday, October 23, 2014
Question of the Month: How does the federal plug-in electric vehicle (PEV) tax credit phase-out work, and has it begun for any vehicle manufacturers? What is the status of other federal alternative fuel tax credits?
Answer: The Internal Revenue Service (IRS) Qualified Plug-In Electric Drive Motor Vehicle Tax Credit begins to phase out for a manufacturer when at least 200,000 qualifying vehicles produced by that manufacturer have been sold for use in the United States, based on sales after December 31, 2009. Many of the other federal tax credits, such as the Alternative Fuels Excise Tax Credit and the Alternative Fuel Infrastructure Tax Credit, expired at the end of 2013 and have not been extended or renewed. Additional tax credits have or will expire this year.
Federal PEV Tax Credit Phase-Out
Each manufacturer must report quarterly to the IRS on their vehicle sales. According to the IRS Plug-In Electric Drive Motor Vehicle Credit Quarterly Sales page (http://www.irs.gov/
Businesses/IRC-30D-Plug-In- Electric-Drive-Motor-Vehicle- Credit-Quarterly-Sales), no manufacturers have reached the 200,000 cumulative PEV sales mark. This means all qualified vehicles are still eligible for their full credit amounts.
The phase-out period stretches over one year, beginning in the second calendar quarter after the quarter in which the manufacturer hits the 200,000 vehicle sales mark. From there, all qualifying vehicles sold by the manufacturer are eligible for 50% of their specified credit for the first two quarters and 25% of the credit for the next two quarters. For example if a manufacturer sells its 200,000th vehicle in the first quarter (Q1) of 2015, the credit amounts for all of that manufacturer’s eligible vehicles would phase out as shown in the table below.
50% of full amount
50% of full amount
25% of full amount
25% of full amount
Also see the phase-out example on FuelEconomy.gov (http://www.fueleconomy.gov/
Below are some other helpful facts about the federal PEV tax credit:
- Tax credit amounts range from $2,500 to $7,500 based on the vehicle’s battery capacity and weight. Details can be found on the IRS Qualified Vehicles page (http://www.irs.gov/
- To file for the credit, you must complete IRS form 8936 (http://www.irs.gov/pub/irs-
pdf/f8936.pdf) and attach it to your federal tax return.
- To qualify for the credit, you must own the vehicle. This means that if you lease a vehicle, you are not eligible. That said, the lessor may decide to pass the discount along to you.
- Only new vehicles are eligible; the vehicle may not have been titled before.
For more information, see the Plug-In Electric Drive Vehicle Credit page (http://www.irs.gov/
Businesses/Plug-In-Electric- Vehicle-Credit-(IRC-30-and- IRC-30D).
Other Federal Tax Credits
Several tax credits expired after December 31, 2013, including:
- Alternative Fuel and Alternative Fuel Mixture Excise Tax Credits
- Biodiesel Income Tax Credit and Biodiesel Mixture Excise Tax Credit
- Alternative Fuel Infrastructure Tax Credit
- Qualified Two- or Three-wheeled Plug-in Electric Drive Motor Vehicle Tax Credit
Even more recently, both the Hydrogen Fuel Excise Tax Credit and the Hydrogen Fuel Mixture Excise Tax Credit expired as of September 30, 2014. The Fuel Cell Motor Vehicle Tax Credit and Hydrogen Fuel Infrastructure Tax Credit are set to expire on .
There have been several bills introduced to extend these tax credits during the 113th Congress. For example, the EXPIRE Act of 2014 (S. 2260; http://hdl.loc.gov/loc.
uscongress/legislation. 113s2260) proposed to extend the tax credits for 2- or 3-wheeled plug-in electric vehicles, biodiesel and renewable diesel fuel mixtures, alternative fuels, hydrogen, fuel cell vehicles, and alternative fuel infrastructure through 2015. However, none of the bills have been enacted as of October 2014.
For more information on federal incentives for alternative fuels and vehicles, see the following websites:
- Alternative Fuels Data Center (AFDC) Federal Laws and Incentives page (http://www.afdc.energy.gov/
- AFDC Expired, Repealed, and Archived Federal Incentives and Laws (http://www.afdc.energy.gov/
Finally, please note that the Technical Response Service recommends consulting a qualified tax professional or the IRS before making any tax-related decisions.
You can contact the Clean Cities Technical Response Service Team by emailing firstname.lastname@example.org or calling 800-254-6735.
Posted by Anonymous at 12:27 PM
DALLAS – Questar Fueling Company, a subsidiary of Questar Corporation (NYSE:STR), opened its newest compressed natural gas (CNG) fueling station at 4243 Duncanville Road in Dallas, Texas. The public-access station will provide fast-fill CNG fueling for Frito-Lay and other fleet operators with medium- and heavy-duty trucks.
“We are pleased to be a part of Frito-Lay’s goal to be the most fuel-efficient fleet in the country,” said Craig Wagstaff, Questar Fueling executive vice president and COO. “Our transportation customers want clean fuels like reliable, low-cost natural gas for their fleets and they don’t have time for delays. That’s why our high-speed, high-volume CNG-fueling stations have captured their attention. Some of the nation’s largest fleet operators like Frito-Lay are transitioning to clean-burning natural gas, and we’re committed to developing the CNG-fueling infrastructure that keeps them on the road at lower cost.”
This is Questar Fueling’s third CNG station in Texas, with other stations in Houston and DeSoto. The company recently opened two stations in Kansas and, over the next 12 months, expects to open other stations along major U.S. transportation corridors in California, Connecticut, Nevada, Missouri, Ohio, Illinois and Georgia. Companies such as Frito-Lay, Swift Transportation, Central Freight Lines, Dart Transit and many others operating medium- and heavy-duty trucks are finding it easier to fill up with clean-burning natural gas. The new Dallas CNG station offers six high-speed fueling lanes for large trucks. The station will also be open to members of the general public who drive natural gas-powered vehicles. The price for CNG is currently about $2 per equivalent gallon compared to about $3.65 per gallon of diesel fuel.
There are over 15 million natural gas vehicles on the road worldwide – but only 140,000 are in the United States. Now that the U.S. has become the world’s largest natural gas producer, the transportation industry is accelerating its integration of natural gas-powered trucks.
Questar (NYSE: STR) is a Rockies-based integrated natural gas company with an enterprise value of about $5.5 billion and three complementary lines of business: retail natural gas distribution, interstate natural gas transportation and natural gas and oil development and production www.Questar.com
Posted by Anonymous at 9:07 AM