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July 31, 2015

President Signs Law to Reduce Propane Excise Tax

Washington, DC – Today, President Obama signed into law a bill making it easier for all Americans to use propane autogas. Included in the extension of the highway bill, the excise tax equalization provision permanently reduces the tax rate on propane autogas and levels the playing field for all alternative fuels.
Rick Roldan, NPGA’s President and CEO applauded Congress for their action saying, “NPGA is very pleased that Congress acted decisively on this issue, making it easier for every American to choose a clean, abundant, and domestic alternative fuel. Propane is the world’s third most common engine fuel, and the United States is producing more of it than ever before. Parity in the fuel tax system will help put more alternative fuel vehicles on the road, which is a good thing for America.”

Excise tax equalization alters the calculation for the excise tax levied against propane used as an auto fuel to be based on an energy content rather than the current volumetric calculation. Due to the lower energy content of propane compared to gasoline, this will result in lower excise taxes being levied on propane used in auto fuel applications. The reduction takes effect January 1, 2016.

NPGA appreciates the leadership of many Senators and Representatives who worked to advance excise tax equalization and were instrumental in its ultimate inclusion in the law. Of note were Senators Burr (R-NC), Bennett (D-CO), and Hatch (R-UT) and Representatives Kelly (R-PA), Kind (D-WI), Young (R-IN), and Ryan (R-WI). We are thankful for the hard work of our members, whose successful grassroots effort on this initiative helped to push it across the finish line.

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About NPGA
The National Propane Gas Association is the national trade association of the propane industry. NPGA represents approximately 2,800 companies, including producers, wholesalers, transporters, and retailers of propane gas as well as the manufacturers and distributors of associated propane equipment and appliances. 50 million Americans choose propane as their energy source. Propane is a clean-burning, efficient and climate-friendly alternative fuel that is available now. For more information about NPGA and the propane gas industry, visit NPGA online.