Legislation announced by U.S. Rep. Charles Boustany (R-LA) on Monday would extend a tax credit for the sale of alternative fuels like propane through December 2021.
Current tax code allows a 50-cent per gallon credit on alternative fuels that are used in motor vehicles, boats and airplanes — but the provision is scheduled to sunset in December.
“Research, development and production of alternative fuels like propane are vital to American competitiveness and the continued health of Louisiana’s economy,” Boustany said. “The propane industry alone has brought more than $600 million to the state. The extension of this credit is critical to ensuring continued investment in this Louisiana industry, ultimately leading to increased availability of good-paying, sustainable jobs.”
Boustany’s bill, H.R. 6228, would amend the Internal Revenue Code of 1986 to extend the deadline for the alternative fuel tax credit, and would expand the tax credit to sales of alternative fuels for use in qualified landscaping equipment.
The bill identifies “qualified landscaping equipment” as that which is used in landscaping or similar activities, powered by an engine capable of running only alternative fuel, or not designed primarily for carrying or towing people from one place to another.