NAFA Seeks Tax Credits for Fleets That Use Clean Fuel and Low-Emission Vehicles
NAFA Fleet Management Association is seeking tax credits on alternative fuel and hybrid vehicles to allow public service fleets the ability to do the right thing for the environment while remaining fiscally responsible.
Princeton, NJ, October 31, 2009 --(PR.com)-- A proposal to allow state and local government vehicle fleets the ability to take advantage of federal tax credits was sent to the leadership of the U.S. Senate Finance Committee and House Ways and Means Committee by NAFA's Executive Director, Phil Russo, CAE, last week. The proposal by NAFA would allow for an Energy and Environmental Vehicle Payroll Tax Credit to be made available to state, local government, and other tax exempt entities whenever vehicle tax credits are available to regular taxpayers for clean fuel or low-emission vehicles.
"If adopted by the Congress, the tax credits will tip the lifecycle cost analysis to make it possible for government, public utilities and public universities to do the right thing for the environment and still be fiscally responsible," said Russo.
State and local governments do not currently benefit from the federal tax credits provided to purchasers of alternative fuel and hybrid vehicles. The solution that NAFA is proposing is a workable and equitable one that allows state and local governments, and other tax-exempt entities, to claim a vehicle tax credit against the employer's share of the entity's federal payroll tax liability. In turn, the federal government would credit an equivalent amount from the General Fund to the Social Security Trust Fund. In keeping with traditional tax policy, the credit will not apply to the employee's share of FICA and Medicare or their federal tax withholdings.
"If we are to achieve substantial penetration of clean fuel vehicles in the national fleet, it will require a combination of tax incentives that reach all consumers – the individuals, the private sector, and the public sector, including state and local governments," explained Russo.
NAFA is asking Members to bring this matter to the attention of their agency or employer and recommend that they also send a letter to their Senators and Representatives. If Members or their agency/employer have any questions, they are free to contact NAFA's U.S. Legislative Counsel, Pat O'Connor at patocconor@kentoconnor.com.
About NAFA Fleet Management Association
NAFA Fleet Management Association is a not-for-profit, individual membership professional society serving the needs of members who manage fleets of sedans, public safety vehicles, trucks, and buses of all types and sizes, and a wide range of military and off-road equipment for organizations across the globe. NAFA is the association for the diverse vehicle fleet management profession regardless of organizational type, geographic location or fleet composition. NAFA's Full and Associate Members are responsible for the specification, acquisition, maintenance and repair, fueling, risk management, and remarketing of more than 3.5 million vehicles including in excess of 1.1 million trucks of which 350 thousand are medium- and heavy-duty trucks. For more information visit http://www.nafa.org
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"If adopted by the Congress, the tax credits will tip the lifecycle cost analysis to make it possible for government, public utilities and public universities to do the right thing for the environment and still be fiscally responsible," said Russo.
State and local governments do not currently benefit from the federal tax credits provided to purchasers of alternative fuel and hybrid vehicles. The solution that NAFA is proposing is a workable and equitable one that allows state and local governments, and other tax-exempt entities, to claim a vehicle tax credit against the employer's share of the entity's federal payroll tax liability. In turn, the federal government would credit an equivalent amount from the General Fund to the Social Security Trust Fund. In keeping with traditional tax policy, the credit will not apply to the employee's share of FICA and Medicare or their federal tax withholdings.
"If we are to achieve substantial penetration of clean fuel vehicles in the national fleet, it will require a combination of tax incentives that reach all consumers – the individuals, the private sector, and the public sector, including state and local governments," explained Russo.
NAFA is asking Members to bring this matter to the attention of their agency or employer and recommend that they also send a letter to their Senators and Representatives. If Members or their agency/employer have any questions, they are free to contact NAFA's U.S. Legislative Counsel, Pat O'Connor at patocconor@kentoconnor.com.
About NAFA Fleet Management Association
NAFA Fleet Management Association is a not-for-profit, individual membership professional society serving the needs of members who manage fleets of sedans, public safety vehicles, trucks, and buses of all types and sizes, and a wide range of military and off-road equipment for organizations across the globe. NAFA is the association for the diverse vehicle fleet management profession regardless of organizational type, geographic location or fleet composition. NAFA's Full and Associate Members are responsible for the specification, acquisition, maintenance and repair, fueling, risk management, and remarketing of more than 3.5 million vehicles including in excess of 1.1 million trucks of which 350 thousand are medium- and heavy-duty trucks. For more information visit http://www.nafa.org
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Contact
NAFA Fleet Management Association
Gary Wien
609-986-1053
www.nafa.org
Gary Wien
609-986-1053
www.nafa.org
Contact
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