Status of the LNG Federal Excise Tax

In the Senate, Senators Michael Bennet (D-CO) and Richard Burr (R-NC) have introduced the LNG Excise Tax Equalization Act of 2013 (S. 1103) that would ensure that LNG pays the same tax as diesel on an energy equivalent basis. In April 2014, during consideration of the EXPIRE Act in Senate Finance, Senators Bennet, Burr, and Hatch offered an amendment to correct the LNG tax inequity. The amendment was not adopted, but Chairman Wyden offered to work with its sponsors to address the issue when the committee considered re-authorization of the highway programs. In July 2014, during Senate Finance consideration of H.R. 5021, the Preserving America’s Transit and Highways Act, the Bennet-Burr amendment was offered and accepted. The full senate, after a series of votes, passed H.R. 5021 on July 29 by a vote of 79-18 with the Bennet-Burr language included. The House, however, rejected the Senate billl for reasons unrelated to the LNG tax inequity provision. Congress ultimately passed a version of the highway bill that did not address the LNG tax inequity. The President signed that version of the bill.

In the House, the companion to the Senate bill, also titled the LNG Excise Tax Equalization Act of 2013 (H.R. 2202) was introduced by Representatives Mac Thornberry (R-TX) and John Larson (D-CT). Co-sponsors include Jim Matheson (D-UT), Leonard Lance (R-NJ), Lee Terry (R-NE), Chris Collins (R-NY), Brian Higgins (D-NY), Alcee Hastings (D-FL), and Randy Forbes (R-VA). No legislative actions have been taken on this legislation in the House.

Last Reviewed: October 31, 2014