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.
- Bergeson & Campbell, P.C.
- Additional language introduced to be attached to the alternative ...
Extension of New York’s Clean Heating Fuel Tax Credit
The New York State Clean Heating Fuel Tax Credit has been extended through 2020. The personal income tax credit, which was initially authorized in 2006, is provided to eligible taxpayers for biodiesel purchases used for residential space and water heating. For each percent of biodiesel blended with conventional home heating oil, a tax credit of $0.01/gallon is available up to a maximum of $0.20/gallon. A partial credit will be calculated for buildings with a shared oil storage tank for residential and non-residenti...
Guide to Measuring Biofuel Blending
As the global commitment to renewable energy sources grows, the importanceof using biodiesel as a blending component with diesel fuel has increased.Biodiesel consists of fatty acid methyl esters (FAME) which are produced by thetransesterification of certain feedstock oils, such as soy, rapeseed, canola, and others.The biodiesel is then blended with diesel fuel at amounts required by the regulatoryagencies of different countries. It is important for fuel terminals and distributors, aswell as regulatory agencies,...
EPA Releases Proposed Rule On Renewables Enhancement And Growth Support
On October 3, 2016, the U.S. Environmental Protection Agency (EPA) released the proposed Renewables Enhancement and Growth Support Rule. This proposed rule includes suggestions to improve the Renewable Fuel Standard (RFS) program and related pro-renewable fuel regulations. Updated regulations included in the proposed rule include allowing biofuel producers to process feedstock and then convert the material into fuels at different facilities, and an expansion to the availability of high-ethanol fuel blends. The...
DC Water Taps Into Biodiesel’s Sustainability Benefits
Sustainability is more than a buzzword at DC Water. Ingrained throughout the agency, sustainability is in high gear at DC Water’s fleet division where biodiesel fuel powers all 230-diesel vehicles, and emissions are closely monitored. “Biodiesel just makes sense,” said Timothy Fitzgerald, Director Fleet Management for DC Water. “We switched to biodiesel in 2007 and have never looked back. It can be used in existing diesel engines, reduces emissions, and our drivers notice a big difference...
Brazil Backtracks From Plan To Increase Ethanol Use Through Tax Breaks
On August 24, 2016, Brazil`s government announced that it would not be extending a tax break on ethanol sales that is due to expire in December 2016. During the 2015 Paris Climate Accord, Brazil pledged to increase cane-based ethanol and biodiesel to nearly 18 percent of its total energy mix by 2030, requiring an increase in annual ethanol production from 30 billion liters in 2015/2016 to 50 billion liters in 2030. The loss of the ethanol tax break prevents biofuel from being cost competitive with gasoline, and...