[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1665 Introduced in House (IH)]

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.

    Be it enacted by the Senate and House of Representatives 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.--
            (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 inserting 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 adding at the end the following:
                    ``(C) Energy equivalent of a gallon of gasoline.--
                For purposes of this paragraph, 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 amended by subsection 
        (a)(1), is amended by striking ``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 subsection (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 content of 128,700 (lower heating value). 
                For purposes 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 liquefied natural gas.--
        Section 6426(d) of the Internal Revenue Code of 1986 is amended 
        by redesignating paragraph (5) as paragraph (6) and by 
        inserting after paragraph (4) the following new paragraph:
            ``(5) Special rule for liquefied natural gas.--In the case 
        of liquefied natural gas, the alternative fuel credit is the 
        product of 50 cents and the per energy equivalent of a gallon 
        of diesel (as defined 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.
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