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NAFA Urges Action To Restore Federal Tax Credits For Biodiesel And Alternative Fuels

Uncertainty surrounding a pair of alternative fuel incentives is impacting vehicle purchase decisions and fuel planning by many fleets.

2012-12-01
PRINCETON, NJ, December 01, 2012 (Press-News.org) While the country is focused on the so-called "fiscal cliff", lost in the negotiations is an important extension of several tax incentives for alternative fuels that expired over a year ago. Fleets have been the early adopters of biodiesel and alternative fuel vehicles, but without these incentives they will have a hard time justifying the additional costs involved with the purchase of biodiesel and alternative fuel vehicles. The incentives include the $1.00 per gallon tax credit for biodiesel and the $0.50 per gallon alternative fuel tax credit for natural gas and propane throughout 2013. In a letter to the members of NAFA Fleet Management Association, Executive Director Phillip E. Russo, CAE, urged fleet managers whose fleets were impacted by these credits to contact their elected officials in Washington, DC.

"The uncertainty surrounding the incentives is now impacting vehicle purchase decisions and fuel planning by many fleets," explained Russo. "For many fleets, a decision by Congress on extending these important credits is needed quickly so that companies and government agencies can finalize their vehicle acquisitions for the current model year and project fuel costs for the coming year."

The biodiesel credit is reflected in the price a fleet pays for fuel, and thus is a significant factor in projecting fuel costs. However, without the tax incentive, biodiesel is significantly more expensive than conventional diesel fuel âEUR" making it more difficult to make the business case for biodiesel. Further, the incentives for propane and natural gas help to offset the higher acquisition cost of alternative fuel vehicles and help to ensure the long-term demand and commercial viability of alternative fuel technologies.

This effort is the latest in NAFA's ongoing mission to look after the interests of fleet managers in the legislative arena. The Association retains legal counsel in both Washington, DC and Ottawa, Canada to fight for the rights of the industry. A monthly newsletter, exclusively sent to NAFA Members, not only tells fleet managers about the changes but does so in simple, easy-to-understand language. In addition to reporting the news, NAFA's legislative team regularly offers the "fleet perspective" on proposed changes and makes sure government agencies keep fleets in mind before making final decisions.

Fleet managers are reminded that they can reach their member of Congress by calling the congressional switchboard at (202) 224-3121 or by visiting the Senate (http://www.senate.gov/general/contact_information/senators_cfm.cfm) or House website (http://www.house.gov/representatives/find/). NAFA has even prepared a sample letter that people can use (http://www.nafa.org/Source/Template_Extenders_Letter.pdf) to add their voice to the campaign.

"Nobody fights harder for fleet managers than NAFA," said NAFA Russo. "We are the eyes and the ears of fleet management -- our legislative support is unparalleled."

NAFA is the world's premier non-profit association for professionals who manage fleets of sedans, public safety vehicles, trucks, and buses of all types and sizes, and a wide range of military and off-road equipment for organizations across the globe. NAFA is the association for the diverse vehicle fleet management profession regardless of organizational type, geographic location or fleet composition. NAFA's Full and Associate Members are responsible for the specification, acquisition, maintenance and repair, fueling, risk management, and remarketing of more than 3.5 million vehicles including in excess of 1.1 million trucks of which 350 thousand are medium- and heavy-duty trucks. For more information visit http://www.nafa.org


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[Press-News.org] NAFA Urges Action To Restore Federal Tax Credits For Biodiesel And Alternative Fuels
Uncertainty surrounding a pair of alternative fuel incentives is impacting vehicle purchase decisions and fuel planning by many fleets.