New bipartisan legislation in the U.S. Congress seeks to amend the Internal Revenue Code to change the way liquified natural gas is taxed, from a volume (gallon) to an energy content (diesel gallon equivalent) basis. The LNG Excise Tax Equalization Act of 2013 (H.R. 2202), introduced by Representatives Mac Thornberry (R-Texas) and John Larson (D-Conn.), has been referred to the House Ways and Means Committee. Senators Michael Bennet (D-Colo.) and Richard Burr (R-N.C.) are expected to introduce a similar bill to the Senate. Currently, the federal highway excise tax on both diesel and LNG is set at 24.3 cents per gallon. However, it takes about 1.7 gallons of LNG to equal the energy content of one gallon of diesel. The result is the taxation of LNG at a rate 70 percent higher than diesel on an energy equivalent basis. The federal government already equalizes the tax between compressed natural gas and gasoline.
 |
This article originally ran in NATSO News Weekly (NNW), NATSO's member only weekly electronic newsletter. NNW is packed with the latest updates on government and business issues affecting the truckstop and travel plaza industry. If you aren't reading NNW, you are missing out. Not a member? Join today or submit a request to receive additional information. If you are a member and not receiving NNW, submit a request to be added to the email list. |
Subscribe to Updates
NATSO provides a breadth of information created to strengthen travel plazas’ ability to meet the needs of the travelling public in an age of disruption. This includes knowledge filled blog posts, articles and publications. If you would like to receive a digest of blog post and articles directly in your inbox, please provide your name, email and the frequency of the updates you want to receive the email digest.
