Additional language introduced to be attached to the alternative fuel tax credit

0
- By:

Courtesy of Bergeson & Campbell, P.C.

On March 26, 2015, Representative Todd Young (R-IN) introduced H.R. 1665, the Alternative Fuel Tax Parity Act, to amend the Internal Revenue Code of 1986 to equalize the excise tax on liquefied natural gas (LNG) and liquefied petroleum gas (propane). This legislation would attach federal tax parities for LNG and propane to the Alternative Fuel Tax Credit (AFTC) that currently covers alternative fuel mixtures, alcohol fuel, and biodiesel. The AFTC has expired and is awaiting renewal. If H.R. 1665 is attached to the AFTC, LNG and propane would be taxed based on their energy output rather than volume, changing the tax on LNG from 24.3 cents-per-gallon to 14.1 cents-per-gallon and the tax on propane from 18.3 cents-per-gallon to 13.2 cents-per-gallon. The bill is intended to level the playing field by taxing LNG and propane at the same energy based rate as gasoline. Gasoline is currently taxed at 18.3 cents-per-gallon.

Customer comments

No comments were found for Additional language introduced to be attached to the alternative fuel tax credit. Be the first to comment!