Senate Finance Committee Issues Energy Task Force Report on Tax Extenders

Aug 15, 2019

The Senate Finance Committee’s Energy Task Force has issued its report on whether several expired and expiring energy tax policies – including the tax incentives for biodiesel and alternative fuels – are still necessary. A copy of the summary report can be found at: https://www.finance.senate.gov/imo/media/doc/Energy9.pdf

The report does not actually make any recommendations with regards to the tax extenders. Rather, it summarizes the proposals raised by stakeholders during meetings and includes copies of all written submissions. In March, the Senate Finance Committee proposed the “Tax Extender and Disaster Relief Act of 2019.” There has been no action on that legislation since introduction other than the forming of various task forces to review tax provisions. Included in the proposed legislation are the following provisions:

• a retroactive extension of the biodiesel and renewable diesel credits through December 31, 2019;

• a retroactive extension and clarification of the alternative fuel and alternative fuel mixture credits through December 31, 2019. The clarification is language that states that an alternative fuel mixture credit is not available to mixtures of that contain liquefied petroleum gas, compressed or liquefied natural gas and compressed or liquefied gas derived from biomass. The clarifying language applies on a forward basis and will not affect credits being claimed for the retroactive period;

• extension of the oil spill tax through 2019. The tax would be reinstated on the 1st day of the calendar month following enactment of the legislation.

This legislation is similar to the “Taxpayer Certainty and Disaster Tax Relief Act of 2019” passed out of the House Ways and Means Committee (though that legislation extends the provisions through 2020). The full House has not taken up the legislation to date.