Tax Extenders Introduced in the Senate

Mar 01, 2019

A package of tax extenders was introduced in the Senate yesterday by Finance Committee Chairman Charles Grassley (R-IA) and Ranking Member Ron Wyden (D-OR). The as yet unnumbered “Tax Extender and Disaster Relief of Act of 2019” proposes, among other 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.

The introduction of the legislation does not necessarily mean that extenders will be enacted anytime soon. The House Ways and Means Committee Chairman Richard Neal (D-MA) has indicated that he wants to take time to review each provision and hold a hearing in March.

The text of the Senate proposal can be found at: https://www.finance.senate.gov/imo/media/doc/116.S.xxx%20-%20Tax%20Extender%20and%20Disaster%20Relief%20Act%20of%202019%20-%20MCG19154.pdf