The Senate introduced the New Alternative Transportation to Give Americans Solutions (NAT GAS) Act of 2011, similar to the House bill by the same name, which would extend tax credits for building fueling stations.
To fund the tax credits, the Senate's NAT GAS Act would impose a funding fee. The House version lacked this type of funding provision. The bill provides that in order offset costs, a user fee would be imposed on the sale of liquefied natural gas and compressed natural gas sold for use as a motor vehicle fuel.
The Senate bill is sponsored by Senators Robert Menendez (D-N.J.), Richard Burr (R-N.C.), Saxby Chambliss (R-Ga.) and Majority Leader Harry Reid (D-Nev.).
Tax credits listed in the Senate bill would run through 2016 and, like the House bill, would be worth up to $7,500 for the purchase of a natural gas-fueled car and up to $64,000 for a heavy truck. Producers of such vehicles would also get a tax credit. The current excise tax credit of 50 cents per gallon for producers of natural gas motor fuel would be extended through 2016.
Credits for building natural gas fueling stations would rise from the current 30% to 50% of a station's cost, or up to $100,000, under the House bill. The Senate bill also encourages investment in fueling stations, but the exact amount was not known last night.