H.R. 3832

LNG Excise Tax Equalization Act of 2012

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I

112th CONGRESS

2d Session

H. R. 3832

IN THE HOUSE OF REPRESENTATIVES

January 25, 2012

Mr. Thornberry 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 provide for the equalization of the excise tax on liquefied natural gas and per energy equivalent of diesel.

1.

Short title

This Act may be cited as the LNG Excise Tax Equalization Act of 2012.

2.

Findings

The Congress finds the following:

(1)

Liquefied natural gas has an energy content of 84,820 Btu per gallon (higher heating value).

(2)

Diesel has an energy content of 137,380 Btu per gallon (higher heating value).

(3)

A gallon of liquefied natural gas only produces 61.74 percent of the energy produced from a gallon of diesel; however, the Federal excise taxes on liquefied natural gas and diesel are both 24.3 cents per gallon.

(4)

The Federal excise tax on compressed natural gas is 18.3 cents per energy equivalent of a gallon of gasoline.

3.

Equalization of excise tax on liquefied natural gas and per energy equivalent of diesel

(a)

In general

Subparagraph (B) of section 4041(a)(2) of the Internal Revenue Code of 1986 is amended by striking the period at the end of clause (ii) and inserting , and, and by inserting after clause (ii) the following new clause:

(iii)

in the case of liquefied natural gas, 24.3 cents per energy equivalent of a gallon of diesel.

.

(b)

Energy equivalent of a gallon of diesel and administrative provision

Paragraph (2) of section 4041(a) of such Code is amended by adding at the end the following:

(C)

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 137,380 (higher heating value).

(D)

Administrative provisions

For purposes of applying this title with respect to the taxes imposed by this subsection, references to any liquid subject to tax under this subsection shall be treated as including references to liquefied natural gas subject to tax under this paragraph.

.

(c)

Conforming amendments

Section 4041(a)(2)(B)(ii) of such Code is amended—

(1)

by striking liquefied natural gas,, and

(2)

by striking peat), and and inserting peat) and.

(d)

Effective date

The amendments made by this section shall apply to any sale or use of liquefied natural gas after 14 days after the date of the enactment of this Act.