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Markwayne Mullin Writes Letter of Support for Alternative Fuels


On June 18, 2019, Congressman Mullin supported the Tax Extender Bill and the Alternative Fuels Tax provision within the bill, in a letter written to the The Honorable Richard Neal House Ways and Means Committee, Chairman and The Honorable Kevin Brady House Ways and Means Committee Ranking Member.

He writes:

Unfortunately, when dealing with transportation fuel, the tax code continues to selectively provide favorable treatment to certain fuels, while preventing others from competing on an even playing field. Such is the case with natural gas for transportation, which must compete with vehicle incentives for electric vehicles (up to $7,500/vehicle) as well as fuel cell vehicles (up to $40,000 per vehicle). An additional preference exists because unlike other fuels, electricity is currently not subject to federal excise tax on motor vehicle fuels and therefore light, medium and heavy-duty electric vehicles do not contribute to the highway trust fund. Even within the AFTC there is inequitable treatment as natural gas and propone only receive $0.50 while the biodiesel credit is worth $1.00 to $1.10/gallon.

The alternative fuels tax credit is different from other federal incentives because the benefits of the credit largely go directly to the end-user of the fuel, not the fuel producer or retailer. As such, tax-exempt entities, municipalities, school districts, airport authorities, and other publicly-owned


The Tax Extender Bill did pass through Committee this week, June 27, 2019 and is headed to the House floor sometime after July 8. SWTA members are encouraged to call their Congressional Representative and ask them to support both the Tax Extender Bill with the Alternative Fuels Tax provision intact.

See the Congressman’s complete letter below.

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Markwayne Mullin letter to House Ways and Means

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