“LNG Excise Tax Equalization Act of 2015” Introduced in House
On Wednesday, Rep. Mac Thornberry (R-TX) and John B. Larson (D-CT) introduced the “LNG Excise Tax Equalization Act of 2015” (H.B. 905) to make the excise tax on LNG and diesel comparable on an energy-equivalent basis. Currently, the federal excise tax on LNG and diesel is set at 24.3 cents per gallon. Because it takes 1.7 gallons of LNG to produce the same amount of energy as a gallon of diesel fuel, LNG is taxed 70 percent higher than diesel. This measure would level the playing field by applying the excise tax on LNG on an energy equivalency, rather than volumetric basis. “This common sense, bipartisan legislation levels the playing field for LNG trucks, further empowering companies to harness the benefits of clean, affordable, and domestic natural gas,” said Larson. Originally introduced in 2009, the bill has been reintroduced in each subsequent Congress. The Senate Committee on Finance passed several tax related bills Wednesday, including one based on Larson and Thornberry’s LNG excise tax fix bill. See below article.