Propel Fuels CEO lays out biofuels infrastructure vision
In Washington, Propel Fuels’ CEO Matt Horton explained to the Senate Committee on Energy and Natural Resources how the federal government must participate in establishing the alternative fuel infrastructure of the future.
“With the primary location of the existing E85 and biodiesel fueling sites in the upper Midwest, much of the balance of the nation remains without such fueling facilities while Chrysler, General Motors, and Ford continue to produce almost 50 percent of their entire production as Flexible Fuel Vehicles,” Horton said. Policy suggestions to the committee included:
• A tax credit of up to 50 percent of the total project costs, limited to $100,000 per site.
•Ability to utilize the credit for the complete value of the improvements that are associated with the establishment of the fuel equipment.
• The ability of the retail operator who is incurring the equipment costs to transfer the value of the credit to a third party.
• The tax credit should be allowed to be in place for no less than seven calendar years.
• All equipment supported by the credit must be in continual service for no less than 5 years, or be subject to recapture.
• The alternative fuel income tax credit would only be applicable to support the dispensing of those alternative fuels as defined by the Secretary of the DOE.
• Recognizing the need to be considerate of the federal budget issues, it is also possible to limit the annual financial impact of a new infrastructure tax credit.
Category: Fuels
