Rep. John E. Ensign (R-NV) proposed legislation late last weekthat would provide a 50-cent income tax credit for each gallonequivalent of natural gas, propane and methanol used in vehiclesplaced in service after Dec. 31, 1997. The tax credit will act as a”significant financial” incentive for fleet managers and others tostep up their use of clean, domestic fuels.

Ensign crafted the legislation after hosting a Clean AirConference in Las Vegas in December in which participants expressedstrong support for existing “alternative fuel solutions,” but atthe same time said cost was a “major concern” of theirs, noted JackSinn, press aide for Ensign. “Everyone agrees alternative fuels area big part of the solution but conversion is expensive. If we canremove the tax burden that the government is imposing, we can clearthe way for real solutions for cleaning our environment,” Ensignsaid in a press statement.

The Natural Gas Vehicle Coalition of Arlington, VA, applaudedEnsign’s measure, saying it would provide a badly needed shot inthe arm for the use of compressed natural gas, liquefied naturalgas and other alternative fuels, as well an increase in the demandfor natural gas vehicles.

Ensign is counting on his bill, titled the Clean Burning FuelsIncentive Act, being included either as part of the House’s globalwarming legislation or as part of the Intermodal SurfaceTransportation Efficiency Act of the transportation bill, accordingto Sinn. Ensign said his proposal has received strong bipartisansupport so far.

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