State Offers Incentives for Alternative Fuel Cars

Story by Brooks McCabe and Ryan White

With gas prices close to four dollars a gallon and the United States relying on the importation of greater amounts of foreign oil, the West Virginia Legislature and government took steps to help curb such problems in the 2011 legislative session.

The Marcellus Gas and Manufacturing Development Act reenacted incentives that would encourage residents to use alternative fuel vehicles, such as natural gas, rather than traditional gasoline-based vehicles. The conversion of traditional vehicles to natural gas vehicles will save residents and businesses a substantial amount of money on fuel costs. The price per gallon equivalent of natural gas is currently at approximately $2.25, which would be more than $1.50 per gallon savings on fuel costs. In addition, the use of natural gas as a fuel will increase the demand for a natural resource which is in abundance in West Virginia. Accordingly, providing alternative fuel incentives is a win-win situation for West Virginia residents, businesses and industry.

The Act provides two incentives that should increase the use of natural gas vehicles and increase the availability of natural gas refueling stations. First, in order to decrease the upfront cost of natural gas vehicles, a tax credit was created that can be taken to offset the cost of purchasing an alternative fuel vehicle or converting to an alternative fuel vehicle. Under the Act, alternative fuel vehicles would include natural gas vehicles, hydrogen vehicles and electric vehicles. The tax credit is equal to 35 percent of the cost of purchasing a new natural gas vehicle or 50 percent of converting to a natural gas vehicle.

A resident or West Virginia business can take up to a maximum amount of $7,500 in credits for vehicles that weigh 26,000 pounds or less and up to a maximum of $25,000 in credits for vehicles that weigh 26,000 pounds or more.

In order to increase the ability of residents to refuel natural gas vehicles in West Virginia, the Act also provides a tax credit for constructing alternative fuel vehicle refueling stations. The tax credit is equal to 50 percent of the cost of constructing the refueling stations. The maximum amount of credits that can be taken for this cost is $250,000 for stations not open to the public and $312,500 for stations open to the public.

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State Offers Incentives for Alternative Fuel Cars

The Marcellus Gas and Manufacturing Development Act reenacted incentives that would encourage residents to use alternative fuel vehicles, such as natural gas, rather than traditional gasoline-based vehicles. The conversion of traditional vehicles to



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