Thursday, November 19, 2015
By Marc Kovac
COLUMBUS
A lawmaker panel has signed off on legislation creating tax incentives for the purchase or conversion of natural gas-run vehicles.
The House Finance Committee, on a unanimous vote Wednesday, approved HB 176, clearing the way for a potential floor vote by the full chamber.
It’s the second time the House has reviewed the proposed law changes – a similar bill by the same sponsors was approved last session but stalled in the Ohio Senate.
State Reps. Sean J. O’Brien of Bazetta, D-63rd, and Dave Hall, R-Millersburg, are hoping for support from senators this time.
“Other states are doing it,” O’Brien told the House Finance Committee. “When you look at what’s going on across the country, Ohio is actually behind.”
The bill would provide thousands of dollars in tax breaks to cover new-vehicle purchases or conversions from conventional fuels to compressed natural gas.
Another provision would provide a $500 sales-tax break for those buying electric vehicles.
The legislation also would earmark $16 million in annual grants to assist local governments and nonprofits in converting their vehicle fleets to compressed natural gas.
Additional language would phase in, over 10 years, motor-fuel taxes on compressed natural gas. A sunset provision would end the incentive and grant programs after five years.
Other states have already implemented incentives for compressed natural gas vehicles, including Pennsylvania, West Virginia and Indiana.
“With the discovery of major shale plays in North America combined with advancements in drilling to harvest these vast stores of natural gas and oil, Ohio and our nation are experiencing a major energy revolution,” O’Brien said. “Considering these shale plays have enough reserves to provide our nation’s needs for 100 years with cheap and reliable supplies, governments and the private sector must rethink their policies to capitalize on this energy boom.”