New U.S. Senate legislation would double tax incentives for buying vehicles fueled by natural gas, according to Bloomberg.
The tax incentives would also be extended for 10 years under the legislation, which is sponsored by Sen. Robert Menendez (D-New Jersey).
The credits can be used to cover 80 percent of the added cost to buy natural gas vehicles over conventional vehicles. The credits would jump to as high as $12,500 for passenger cars and light trucks and as much as $64,000 for higher weight-class vehicles, according to a summary of the legislation.
Energy investor T. Boone Pickens joined Menendez at a news conference on July 8 to promote the legislation. Pickens is promoting the use of natural gas in automobiles as a way to end U.S. dependence on foreign oil. He predicted an extension of the tax credits will pass Congress soon after the August recess.
The bill would expand and extend tax incentives for purchases of natural gas used as a vehicle fuel and for the installation of refueling stations. A similar measure was introduced in the House this year.
Refueling-station tax credits would be doubled to as much as $100,000, according to the Senate bill summary. The legislation also includes a provision that would allow businesses to claim 100 percent of the cost of building a manufacturing facility placed in service before Jan. 1, 2015.