Excise Tax Equalization Passes House

On July 15, 2015, the House of Representatives passed a five-month extension of the Highway Bill, H.R. 3038, by a large, bipartisan margin. The excise tax equalization provision, one of the National Propane Gas Association’s (NPGA) legislative priorities for this year is included in the bill. Excise tax equalization alters the calculation for the excise tax levied on propane used as an auto fuel to be based on an energy content basis, rather than the current volumetric calculation. The Highway Bill also adjusted the calculation for liquefied natural gas. There are still several steps that need to happen before this provision becomes law. Currently, House and Senate leaders appear to be at an impasse on how to best handle the looming expiration of federal highway…

BPN Staff

On July 15, 2015, the House of Representatives passed a five-month extension of the Highway Bill, H.R. 3038, by a large, bipartisan margin. The excise tax equalization provision, one of the National Propane Gas Association’s (NPGA) legislative priorities for this year is included in the bill.

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Excise tax equalization alters the calculation for the excise tax levied on propane used as an auto fuel to be based on an energy content basis, rather than the current volumetric calculation. The Highway Bill also adjusted the calculation for liquefied natural gas. There are still several steps that need to happen before this provision becomes law. Currently, House and Senate leaders appear to be at an impasse on how to best handle the looming expiration of federal highway funding. With the House passing its bill by such a large margin, and the White House supporting this effort, there is pressure on the Senate to act. Next week, Senate leadership has indicated it will begin to advance a longer-term highway bill. The details of that legislation are yet unclear. This language has now passed both the House of Representatives and the Senate Finance Committee. There appears to be bipartisan, bicameral interest in fixing this calculation. NPGA will continue to advocate for the excise tax equalization language to be included in whatever final package is ultimately agreed to. NPGA thanks industry members who attended Propane Days and raised this issue with their Members of Congress.

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