US congressman Paul Tonko is renewing his effort to simplify and improve the federal tax credits for fuel cell-powered industrial vehicles, including forklifts.

The Democratic representative introduced a similar proposal that failed to gain momentum in 2010. For the new effort, he has the support of Chris Gibson, a Republican.

Tonko and Gibson held a 26 April news conference at Plug Power Inc in Latham and underscored how the credits could boost investments in clean technology and create new jobs.

The legislators from New York State's capital region - Tonko from Amsterdam and Gibson from Kinderhook - say their proposal would create a level playing field when it comes to tax credits.

"With the changes we make in this legislation, we will help companies transition to a clean energy source that will improve productivity and reduce our dependence on fossil fuels," Tonko said. "More importantly, we are making the tax credits simple and fair - and provide an incentive that will help fuel cell manufacturers like Plug Power grow and create jobs. I appreciate Congressman Gibson's work and support on this issue. We will continue to work together to push this legislation forward."

Gibson added: "I firmly believe that an essential part of our economic recovery is providing businesses with clean, reliable, and affordable sources of power. Right here in our own backyard is a leader in developing clean fuel cell solutions that will increase our energy independence. I have been impressed by the existing forklift technology that Plug Power is already manufacturing as well as the potential future applications for a wide variety of business customers. As fuel cells advance, businesses will be able to access a clean and cost-effective power solution and I look forward to continuing to work with Congressman Tonko on this important effort," said Congressman Gibson.

The legislation would put the credit with other vehicles powered by renewable energy resources under the Alternative Motor Vehicle Credit in Section 30B of the tax code, Tonko said. This credit covers most clean-technology-powered vehicles such as hybrids and fuel cell-powered cars or trucks.

A purchaser of a fuel cell-powered forklift would immediately know the exact amount of the tax credit from the weight of the vehicle, much like the tax credit for clean energy cars and trucks. Vehicles weighing up to 8,500 lbs (3,825 kg) would receive a USD4,000 credit, plus an additional USD1,500 for an energy efficiency rating of 40% or better. The legislation would restore the full credit of USD8,000 for passenger cars, which had been reduced by half at the start of 2011.

The bill deals with retrofitting industrial vehicles with new fuel cell power that would replace gas or battery power. The bill would change section 48C of the tax code and apply tax credits based on a vehicle's kilowatt (kW) capacity. A tax credit of USD940 for each 0.5 kW of capacity is provided up to 5 kW. Above 5 kW, additional credits are applied on a graduated scale. The maximum credit under the provision is capped at USD12,700 for each vehicle.

Plug Power employs more than 100 staff in Latham and has added 20 manufacturing jobs in the past year to address growing demand for fuel cells.