Rep. Young Introduces Liquefied Natural Gas Tax Parity Bill

April 13, 2015

Rep. Todd Young (R-Ind.) introduced legislation aimed at ensuring that excise taxes on liquefied natural gas (LNG) and propane are levied at a rate consistent with their energy output relative to diesel and gasoline.

LNG produces 58 percent of the energy output of diesel but is taxed at the same 24.3 cents per gallon rate. Similarly, propane produces 72 percent of the energy output of gasoline, but it is taxed at the same 18.3 cents per gallon rate.

The Alternative Fuel Tax Parity Act, H.R. 1665, introduced March 26, seeks to eliminate these disparities and set energy equivalent rates for LNG and propane at 14.1 cents per gallon and 13.2 cents per gallon, respectively.

The bill is co-sponsored by John Larson (D-Conn.), Mac Thornberry (R-Texas) and Ron Kind (D-Wisc.).

A similar proposal sponsored by Senators Richard Burr (R-N.C.) and Michael Bennet (D-Colo.) was approved by the Senate Finance Committee in February. 

Tiffany Wlazlowski Neuman's photo

Tiffany Wlazlowski Neuman

Tiffany Wlazlowski Neuman develops and executes communications strategies to advance NATSO’s public relations and advocacy goals. Tiffany also develops and oversees partnerships related to the NATSO Foundation’s public outreach initiatives. Tiffany lives in the D.C. metro area with her husband and their two sons.More

Tags

More on Fuel & Energy

Tell Us What You Think

Back to Fuel & Energy