New bill introduced will cut excise tax on LNG fuel

“This bill provides a fair, market centered solution to fix the tax disparity between diesel and LNG,” said Thornberry. “I think this change will encourage more private sector investment in LNG infrastructure and production, and that will be a real positive effect on our economy.”

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. Thornberry’s bill would level the playing field by applying the excise tax to LNG and diesel based on the amount of energy each produces, which is how it is applied to CNG and gasoline.

Moreover, Congressman Larson commented: “Companies are already beginning to make the switch towards natural gas vehicles and this bill will knock down a significant barrier preventing companies from further harnessing this domestic energy source. By leveling the playing field for LNG trucks, we are taking an easy step towards utilizing clean, affordable and American energy.”

Source: U.S. Congressman Mac Thornberry

Tags: Congressman Mac Thornberry lng lng diesel tax lng Excise Tax Equalization Act of 2013 lng fuel tax lng fueling lng infrastructure lng production lng station LNG truck Rep. John Larson lng