Ohio State Reps. Sean O’Brien (D) and Dave Hall (R) introduced legislation Nov. 4 that would provide tax incentives for companies that use alternative fuels.
According to a statement by O’Brien, the legislation would establish a sales-tax reduction for those who purchase electric vehicles and provide tax incentives for companies that buy or convert vehicles that run on compressed natural gas.
It also would also create a motor fuel tax on CNG that will match the current tax on gas and diesel over a period of five years.
“Ohio is well behind other states when it comes to CNG,” O’Brien said. “It’s particularly frustrating when you consider we have the Marcellus and Utica shale [natural-gas formations] here in Ohio, yet we are currently doing little to take advantage of our resources.”
Surrounded by Indiana, Pennsylvania and West Virginia, which recently have passed similar incentive programs, the bill attempts to make Ohio more competitive in the nat-gas market, O’Brien said.
Under the proposal, the incentives would be phased out after a five-year period and self-funded by already existing oil and gas taxes.
