INDIANAPOLIS (AP) - An Indiana lawmaker says a new state tax credit for natural gas-powered vehicles will create jobs, improve the environment and reduce Indiana's dependence on foreign oil.
A law signed by Gov. Mike Pence provides a three-year income tax credit for natural gas-powered vehicles weighing more than 33,000 pounds. It imposes the motor carrier fuel tax and the state sales tax on the purchase of natural gas, butane and propane used as motor fuel. Those tax rates will be equivalent to rates for purchasing diesel and gasoline.
Republican Rep. Randy Frye of Greensburg says compared with gasoline and diesel, natural gas is an "environmentally friendly and equally productive fuel source."
He says a summer study committee will study potential impact fees for hybrid and plug-in vehicles.
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