Alternative Fuel Tax Parity Act to Fix LNG Tax Inequity Introduced in House

By Paul Kerkhoven, NGVAmerica. 

On Thursday, Rep. Todd Young (R-IN), John Larson (D-CT), Mac Thornberry (R-TX) and Ron Kind (D-WI) introduced the Alternative Fuel Tax Parity Act (H.R. 1665) that corrects the LNG tax disparity. Currently, liquefied natural gas (LNG) is taxed at a rate 70 percent higher than diesel fuel on an energy content basis, working against adoption of natural gas vehicles in the heavy truck market.  Resetting the tax rate so that it is based on energy content rather than volume would remove an artificial barrier from the market.