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. THORN-
BERRY, 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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Alternative Fuel Tax 
Parity Act’’. 
SEC. 2. EQUALIZATION OF EXCISE TAXES AND CREDITS ON 
LIQUEFIED NATURAL GAS AND LIQUEFIED 
PETROLEUM GAS. 
(a) LIQUEFIED PETROLEUM GAS.— 
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(1) IN GENERAL.—Subparagraph (B) of section 
4041(a)(2) of the Internal Revenue Code of 1986 is 
amended by striking ‘‘and’’ at the end of clause (i), 
by redesignating clause (ii) as clause (iii), and by in-
serting after clause (i) the following new clause: 
‘‘(ii) in the case of liquefied petroleum 
gas, 18.3 cents per energy equivalent of a 
gallon of gasoline, and’’. 
(2) ENERGY
EQUIVALENT
OF
A
GALLON
OF 
GASOLINE.—Paragraph (2) of section 4041(a) of the 
Internal Revenue Code of 1986 is amended by add-
ing at the end the following: 
‘‘(C) ENERGY EQUIVALENT OF A GALLON 
OF
GASOLINE.—For purposes of this para-
graph, the term ‘energy equivalent of a gallon 
of gasoline’ means, with respect to a liquefied 
petroleum gas fuel, the amount of such fuel 
having a Btu content of 115,400 (lower heating 
value). For purposes of the preceding sentence, 
a Btu content of 115,400 (lower heating value) 
is equal to 5.75 pounds of liquefied petroleum 
gas.’’. 
(b) LIQUEFIED NATURAL GAS.— 
(1) IN GENERAL.—Subparagraph (B) of section 
4041(a)(2) of the Internal Revenue Code of 1986, as 
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amended by subsection (a)(1), is amended by strik-
ing ‘‘and’’ at the end of clause (ii), by striking the 
period at the end of clause (iii) and inserting ‘‘, 
and’’ and by inserting after clause (iii) the following 
new clause: 
‘‘(iv) in the case of liquefied natural 
gas, 24.3 cents per energy equivalent of a 
gallon of diesel.’’. 
(2) ENERGY
EQUIVALENT
OF
A
GALLON
OF 
DIESEL.—Paragraph (2) of section 4041(a) of the 
Internal Revenue Code of 1986, as amended by sub-
section (a)(2), is amended by adding at the end the 
following: 
‘‘(D) ENERGY EQUIVALENT OF A GALLON 
OF DIESEL.—For purposes of this paragraph, 
the term ‘energy equivalent of a gallon of diesel’ 
means, with respect to a liquefied natural gas 
fuel, the amount of such fuel having a Btu con-
tent of 128,700 (lower heating value). For pur-
poses of the preceding sentence, a Btu content 
of 128,700 (lower heating value) is equal to 
6.06 pounds of liquefied natural gas.’’. 
(3) ALTERNATIVE
FUEL
CREDIT
FOR
LIQUE-
FIED NATURAL GAS.—Section 6426(d) of the Inter-
nal Revenue Code of 1986 is amended by redesig-
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nating paragraph (5) as paragraph (6) and by in-
serting after paragraph (4) the following new para-
graph: 
‘‘(5) SPECIAL RULE FOR LIQUEFIED NATURAL 
GAS.—In the case of liquefied natural gas, the alter-
native fuel credit is the product of 50 cents and the 
per energy equivalent of a gallon of diesel (as de-
fined in section 4041(a)(2)(D)) for the number of 
gallons of liquefied natural gas sold by the taxpayer 
for use as a fuel in a motor vehicle or motorboat, 
sold by the taxpayer for use as a fuel in aviation, or 
so used by the taxpayer.’’. 
(4) 
CONFORMING
AMENDMENTS.—Section 
4041(a)(2)(B)(iii) of the Internal Revenue Code of 
1986, as redesignated by subsection (a)(1), is 
amended— 
(A) by striking ‘‘liquefied natural gas,’’, 
and 
(B) by striking ‘‘peat), and’’ and inserting 
‘‘peat) and’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to any sale or use of fuel after 
December 31, 2015. 
Æ 
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