Young's Tax Parity Bill Signed Into Law

Statement

Congressman Todd Young (R-IN) issued the following statement after his alternative fuel tax parity provision was signed into law:

"With this provision signed into law, dozens of homegrown companies in my Indiana district will receive equitable treatment within the federal tax code," said Congressman Young. "The tax code shouldn't be a tool for Washington to pick winners and losers, and my law guarantees this up-and-coming sector of our economy a level playing field on which to compete."

Young's bipartisan provision ensures that excise taxes on liquefied natural gas (LNG) and propane for highway use are levied at a rate consistent with their energy output relative to diesel and gasoline, respectively. Congress passed the tax parity provision as part of an underlying bill that reauthorizes federal highway and transit programs through October, 29th which was signed into law by President Obama on Thursday, July 30, 2015.

Highway use LNG produces 58% of the energy output of diesel, but is taxed at the same 24.3 cents per gallon rate. Similarly, propane produces 72% of the energy output of gasoline, but is taxed at the same 18.3 cents per gallon rate. The Alternative Fuel Tax Parity provision recognizes these disparities and sets the energy equivalent rates for LNG (14.1 cents per gallon) and propane (13.2 cents per gallon).

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