Tonko, business pushing for return of tax credit
SARATOGA SPRINGS, N.Y. >> Drew West founded American Natural Gas in 2011. Over the last six years, the company — based in Saratoga Springs — has expanded to 13 states across the country.
But at the end of 2016, the Alternative Fuel Excise Tax Credit expired. The tax provision incentivized businesses to accelerate their investments related to using natural gas as an alternative transportation fuel. A tax credit of 50 cents per gallon was available for some entities using certain alternative fuels, such as natural gas, to operate a motor vehicle, according to information from the Department of Energy.
West, who noted the tax credit had been in place since 2006, said he is hoping to see the expired tax credit extended, and put in the tax code for the long-haul.
“In 2015 when they did tax extenders they left this out
[but] they did some others [for] alternative technologies like electric vehicles, solar and wind, and we’re just looking to be on an equal playing field,” said West.
West invited U.S. Rep. Paul Tonko to ANG headquarters in Saratoga Springs on Friday afternoon.
Tonko said, like West, he hopes the reauthorization of the tax credit can happen.
“I’m hoping with our tax reform table discussion — if and when it happens, I’m pushing for it to happen — that we grow the tax policy that serves our needs and addresses our values and we reduce those that don’t,” Tonko said. “The values of this district are that people care about their environment, they care about the air their kids will breathe in the future and we can do something about that.”
West said ANG has received bipartisan support when it comes to bringing back the AFETC.
“I’m very hopeful that [Congress] will do the right thing. This is not a technology that’s futuristic and pie-in-the-sky; this technology is here today,” said West.
Tonko, whose district includes Saratoga Springs, said provides many benefits.
“The value of the work done here with compressed natural gas is that we breathe cleaner air. Our kids, importantly, breathe cleaner air, so there are values to this public policy,” said Tonko. “The carbon pollution that is emitted, the greenhouse gas emissions — they have to be addressed.”
West said having the tax credit established permanently would help businesses when planning for the future..
“We’ve been seeing for the last several years at the end of the year [Congress will] retroactively approve a tax credit and we would just like to see that put forth on a forward-looking basis, so that it can encourage investment,” said West. “That’s really the biggest problem that without having it on a prospective level you’re really curtailing that investment people are looking to make when they’re shifting their fleet over.”