On Thursday afternoon, August 9th, the Senate Finance Committee reported out a bi-partisan supported bill extending several expired tax provisions. Included in this legislation was a two year extension of both the alternative fuel tax credit and the alternative fuel infrastructure tax credit. Both were extended through 2013 and made retroactive for the 2012 tax year.
The bill also extends for two years, through 2013, the credit for the construction of energy-efficient new homes that achieve a 30% or 50% reduction in heating and cooling energy consumption relative to a comparable dwelling constructed per the standards of the 2003 International Energy Conservation Code. In addition, the bill extends for two years, through 2013, the tax credit for US-based manufacturers of energy-efficient clothes washers, dishwashers and refrigerators.
Congress will begin its August recess today and will not return until after Labor Day. It is not clear what the next step in the process will be for consideration of this bill as the House has yet to act on its version of a “tax extenders” bill. However both House and Senate have passed version of bills extending the so-called Bush tax cuts and it is expected that this legislation will be the vehicle for the “tax extenders” bill. It is also not clear at what point in the remaining legislative session of Congress this package of tax provisions would be considered. Many believe Congress will wait until after the elections to address these issues in a lame duck session. NPGA will continue to work for the extension of all tax provisions benefiting the propane industry and will report as developments as they occur.