State Representative Thompson (R-Marietta) announced the passage of a bill that seeks to incentivize the use of alternative fuel like compressed natural gas (CNG) in Ohio.

Over five years, House Bill 336 would gradually bring compressed natural gas in line with the existing motor fuel tax rate. The legislation would also include an incentive for Ohioans to purchase or lease a CNG vehicle by reducing the sales tax on vehicle by up to $500 until 2015.

“No district in Ohio is more greatly impacted by the shale economy than mine in Southeast Ohio,” Thompson said. “This bill helps incentivize greater utilization of the resource. I applaud Chairman Hall and Rep. O’Brien for this great bipartisan bill and I look forward to seeing how it will benefit our state.”

The incentive program would be fully funded by the gradual implementation of the motor fuel tax and would be phased out completely after five years.

Individuals who purchase a new alternative fuel vehicle or convert their traditional fuel vehicle would qualify for an income tax or commercial activity tax credit, which would cover 50 percent of the cost of purchase or conversion. Depending on the vehicle’s rating, the tax credit per vehicle is capped at an amount between $5,000 and $25,000.

Finally, under HB 336, the Director of Environmental Protection would oversee the newly created “Gaseous Fuel Vehicle Conversion Program,” which can make grants to public and nonprofit entities to promote the use of vehicles that operate on alternative fuels.

Having passed the House, the bill now heads to the Ohio Senate for further consideration.

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