Boone Pickens' plan to encourage the purchase and conversion of vehicles to natural gas was shot down in the Senate last week by a 51-47 vote. We all need to contact our State Representatives and tell them that the passage of this bill is vital to America's energy future. I truly believe the economy is and will be the reason people won't convert to natural gas vehicles unless their is some incentive to do so...and tax credits are the incentive. GM just announced that they plan to launch a Chevy truck that can run on either gas or CNG by simply flicking a switch...with up to 650 miles per fill up. If there was a tax credit to purchase this vehicle they couldn't make enough of them to keep up with demand. Here is the link for further reading on the the failed plan:
Tax credits should not be in the mix to get us into CNG. There us nothing worse for the country as a whole than tax credits. What we do need is the federal(EPA certification) and state entities to get the heck out of the way. It is a known and proven fact that CNG is far more EPA friendly than gasoline/diesel. Get rid of the red tape and related costs for conversions. I can see lots of folks buying a bi-fuel vehicle just to get the credit without ever using CNG.
Just my 2 ¢.
I totally agree that there is way to much red tape in converting a vehicle to CNG...and for that matter everything else we do. I am simply stating that this bill would help ENCOURAGE the production, demand, and infrastruture for CNG & LNG vehicles. Americans simply don't like change...unless there is something in it for them to benifit from...in this case better emmissions, fuel economy and price, and the TAX CREDIT would get them motivated.
If that's all america needs for motivation we need a tax credit for getting a job. craig is right, if the EPA doesn't get to involved and squash CNG it will fly on it's own. Why should we subsidize someones business?
Well said Shale Gale!
From the article linked;
“By providing billions in tax subsidies, the NAT GAS Act interferes in the marketplace to favor natural gas over other transportation and energy technologies that may be more cost-effective or sustainable,” states a letter to senators Tuesday from a coalition of strange bedfellows that includes Taxpayers for Common Sense, Friends of the Earth, the Heartland Institute, the Competitive Enterprise Institute, Greenpeace, Americans for Prosperity and others.
The problem is that there is already tremendous interference in the energy marketplace. From the $7500 tax credit to anyone that buys a Volt to the huge giveaways to the solar and wind industries. All these tax incentives, grants, and subsidies need to be wiped out. Nat gas can compete on a level playing field but the filed is not level.
Do you guys realize that this is a TAX CREDIT for the PURCHASER (that means you) of any CNG or LNG vehicle...and/or for the conversion of an existing conventional gas/diesel vehicle...NOT for Boone Pickens or any other company. This simply means that if you buy a CNG/LNG or convert you would be able to reduce your federal tax liability by X amount. If the TAX CREDIT is for $7,500 and you have a federal tax liability of $10,000...you would only owe the IRS $2,500. And if you have received a bonus check and/or royalties...believe me you are going to owe tax.
Put another way...if the item you want to buy at a store cost $10.00, and you have a coupon for $7.50, the item only cost you $2.50. A TAX CREDIT for the tax payer is exactly like a store coupon...it reduces the final amount you have to pay. No ENTITY receives any amount of money...the federal government just receives less tax dollars from the tax payer who bought or converted to a CNG/LNG vehicle.
Where do you think the $7500 comes from? Even if they print it we still are paying for it. Where does the $7500 end up? If it's a GM CNG it ends up in GM's pocket, still subsidizing GM. CNG is smart and can stand on it's own. As Jim said above it is not a level playing field so we need to get rid of tax credits and subsidies, not add to the problem. How many years have we had credits to buy better windows and now the EPA has such stringent lead rules to work on any thing built prior to 1978 that reputable companies won't do the work and the customer can't afford windows now. Stupid contractors do a lead test and for ever more the homeowner must disclose they have lead when they go to sell. We mess with the market and often the outcome is reverse.
You guys are clueless...when this passes make sure you tell your accountant not to reduce your taxes with this tax credit. Go ahead and pay the federal government the tax when you purchase that new CNG vehicle (which none of you will do). I can tell that none of you are business people...and buy the way republicans (as I am) have inacted tax credits also.
Tax credits aren't coming out of anyone's pocket. It is money staying in the wage earner's pocket. It's still a reduction in revenue to the government, though. So how do we we compensate in the budget? How do we shuffle money in order to not negatively impact the overall standard of living for Americans? I don't know. In a home budget it's easy because you have 1 or 2 people making decisions usually and they (should) have the same goal. No so on a national scale.
Regardless of how you feel about government meddling in business or favoring one sector over another the idea that tax credits are no good because someone pays for them isn't really supported.
Take some time and read about the Canadian green corridor. A series of LNG filling stations from Vancouver to Edmonton? And the idea of trains in the US that run on NG? Thank you Sen Toomey. for the no vote. Joseph Keller.
To solve the energy issue in the United States, It is going to take both oil and natural gas. The real use of green energy is not ready at this time nor in the near future. The Keystone Pipeline has to be and will be built. The pipeline is shovel ready and will create thousands of construction jobs.