Nearly 200 businesses and organizations are urging Congress to extend and expand end-user tax credits aimed at accelerating the adoption of natural gas vehicles in commercial transportation.
The Transport Project (TTP) said it submitted a letter to leaders of the House Committee on Ways and Means and the Senate Committee on Finance calling for swift extension of the Alternative Fuel Tax Credit (AFTC) and passage of the Renewable Natural Gas Incentive Act.
The AFTC, which expired on Dec. 31, 2024, provided a $0.50-per-gallon credit for compressed and liquefied natural gas used as motor fuel. First enacted in 2005, the credit has helped provide investment certainty for public and private fleets as they transition to clean, domestically produced gaseous transportation fuels, Transport Project said in a news release.
The proposed Renewable Natural Gas Incentive Act would provide a $1.00-per-gallon tax credit for motor vehicles fueled by RNG.
According to the letter, the absence of such end-user incentives has created uncertainty and slowed the deployment of new natural gas vehicles. Signatories argue the credits are a necessary complement to the Section 45Z Clean Fuel Production Tax Credit, which was preserved and extended under the One Big Beautiful Bill Act of 2025.
The letter is endorsed by transportation, energy, agriculture, waste, and manufacturing sectors, and argues that each of the measures provides market-based, end-user incentives that help fleets offset the higher upfront costs of adopting alternative-fuel trucks.
Signatories also point out the benefits for transit agencies, school districts, freight haulers, and parcel delivery companies, arguing that tax credits help facilitate investment in commercially available RNG-fueled vehicles without increasing fares or reducing service levels.
Among the signatories are: American Trucking Associations, American Biogas Council, American Public Gas Association, American Public Transportation Association, Coalition for Renewable Natural Gas, and the National Waste & Recycling Association.
