Regulatory Submissions

APGA responded to a request for comment published by the Internal Revenue Service (IRS). This input was critical, as the IRS will be issuing guidance on certain provisions of the Internal Revenue Code that were recently amended by the Inflation Reduction Act of 2022 (IRA). The credit for qualified commercial clean vehicles (§ 45W) and the credit for alternative fuel refueling equipment (§ 30C) were the subject of APGA’s submittal. Earlier, APGA provided feedback to the IRS on commercial and residential building energy efficiency tax credits and deductions.

For the credit for qualified commercial clean vehicles, APGA asked the IRS to clarify that a hybrid vehicle equipped with an engine powered by an alternative fuel (i.e., fuels other than gasoline or diesel fuel) qualify for the 30 percent tax credit, up to a maximum of $40,000. Natural gas engines are available for commercial trucks now. The IRS needs to provide additional certainty that these trucks equipped with a natural gas-powered engine are equally clean, so they should get the tax credit.

For the credit for alternative fuel refueling equipment, APGA asked that the IRS take a broad approach to requests for this tax credit. Previously, it provided only a limited benefit to fueling station operators offering natural gas. These stations typically are expensive to construct. With the enacted changes and appropriate guidance, this tax credit can play a role in significantly expanding future deployment of natural gas fueling equipment.