I 

114TH CONGRESS 

1ST SESSION H. R. 1665 

To amend the Internal Revenue Code of 1986 to equalize the excise tax 

on liquefied natural gas and liquefied petroleum gas. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 26, 2015 

Mr. YOUNG of Indiana (for himself, Mr. LARSON of Connecticut, Mr. THORNBERRY, and Mr. KIND) introduced the following bill; which was referred 

to the Committee on Ways and Means 

A BILL 

To amend the Internal Revenue Code of 1986 to equalize 

the excise tax on liquefied natural gas and liquefied 

petroleum gas. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Alternative Fuel Tax 

5 Parity Act’’. 

6 SEC. 2. EQUALIZATION OF EXCISE TAXES AND CREDITS ON 

7 LIQUEFIED NATURAL GAS AND LIQUEFIED 

8 PETROLEUM GAS. 

9 (a) LIQUEFIED PETROLEUM GAS.— 


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1 (1) IN GENERAL.—Subparagraph (B) of section 

2 4041(a)(2) of the Internal Revenue Code of 1986 is 

3 amended by striking ‘‘and’’ at the end of clause (i), 

4 by redesignating clause (ii) as clause (iii), and by in5 serting after clause (i) the following new clause: 

6 ‘‘(ii) in the case of liquefied petroleum 

7 gas, 18.3 cents per energy equivalent of a 

8 gallon of gasoline, and’’. 

9 (2) ENERGY EQUIVALENT OF A GALLON OF

10 GASOLINE.—Paragraph (2) of section 4041(a) of the 

11 Internal Revenue Code of 1986 is amended by add12 ing at the end the following: 

13 ‘‘(C) ENERGY EQUIVALENT OF A GALLON

14 OF GASOLINE.—For purposes of this para15 graph, the term ‘energy equivalent of a gallon 

16 of gasoline’ means, with respect to a liquefied 

17 petroleum gas fuel, the amount of such fuel 

18 having a Btu content of 115,400 (lower heating 

19 value). For purposes of the preceding sentence, 

20 a Btu content of 115,400 (lower heating value) 

21 is equal to 5.75 pounds of liquefied petroleum 

22 gas.’’. 

23 (b) LIQUEFIED NATURAL GAS.— 

24 (1) IN GENERAL.—Subparagraph (B) of section 

25 4041(a)(2) of the Internal Revenue Code of 1986, as 


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1 amended by subsection (a)(1), is amended by strik2 ing ‘‘and’’ at the end of clause (ii), by striking the 

3 period at the end of clause (iii) and inserting ‘‘, 

4 and’’ and by inserting after clause (iii) the following 

5 new clause: 

6 ‘‘(iv) in the case of liquefied natural 

7 gas, 24.3 cents per energy equivalent of a 

8 gallon of diesel.’’. 

9 (2) ENERGY EQUIVALENT OF A GALLON OF

10 DIESEL.—Paragraph (2) of section 4041(a) of the 

11 Internal Revenue Code of 1986, as amended by sub12 section (a)(2), is amended by adding at the end the 

13 following: 

14 ‘‘(D) ENERGY EQUIVALENT OF A GALLON

15 OF DIESEL.—For purposes of this paragraph, 

16 the term ‘energy equivalent of a gallon of diesel’ 

17 means, with respect to a liquefied natural gas 

18 fuel, the amount of such fuel having a Btu con19 tent of 128,700 (lower heating value). For pur20 poses of the preceding sentence, a Btu content 

21 of 128,700 (lower heating value) is equal to 

22 6.06 pounds of liquefied natural gas.’’. 

23 (3) ALTERNATIVE FUEL CREDIT FOR LIQUE24 FIED NATURAL GAS.—Section 6426(d) of the Inter25 nal Revenue Code of 1986 is amended by redesigVerDate Sep 11 2014 00:07 Apr 03, 2015 Jkt 049200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H1665.IH H1665

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1 nating paragraph (5) as paragraph (6) and by in2 serting after paragraph (4) the following new para3 graph: 

4 ‘‘(5) SPECIAL RULE FOR LIQUEFIED NATURAL

5 GAS.—In the case of liquefied natural gas, the alter6 native fuel credit is the product of 50 cents and the 

7 per energy equivalent of a gallon of diesel (as de8 fined in section 4041(a)(2)(D)) for the number of 

9 gallons of liquefied natural gas sold by the taxpayer 

10 for use as a fuel in a motor vehicle or motorboat, 

11 sold by the taxpayer for use as a fuel in aviation, or 

12 so used by the taxpayer.’’. 

13 (4) CONFORMING AMENDMENTS.—Section 

14 4041(a)(2)(B)(iii) of the Internal Revenue Code of 

15 1986, as redesignated by subsection (a)(1), is 

16 amended— 

17 (A) by striking ‘‘liquefied natural gas,’’, 

18 and 

19 (B) by striking ‘‘peat), and’’ and inserting 

20 ‘‘peat) and’’. 

21 (c) EFFECTIVE DATE.—The amendments made by 

22 this section shall apply to any sale or use of fuel after 

23 December 31, 2015. 

Æ 


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