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.
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