Section 1 Short title
This Act may be cited as the “Natural Gas Truck Tax Parity Act of 2016”.
Natural Gas Truck Tax Parity Act of 2016
A BILL
To amend the Internal Revenue Code of 1986 to provide for a partial exclusion from the excise tax imposed on heavy trucks sold at retail for alternative fuel trucks.
Sec. 2 Partial exclusion from excise tax imposed on heavy trucks sold at retail for alternative fuel trucks
In general— Section 4051(a) 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) Partial exclusion for alternative fuel trucks
“(A) In general—In the case of any automobile truck chassis, automobile truck body, or tractor subject to tax under paragraph (1) which is fueled wholly or partially by an alternative fuel, the rate of tax shall be reduced by 35 percent.
“(B) Alternative fuel—For purposes of subparagraph (A), the term alternative fuel means compressed natural gas, liquefied natural gas, liquefied petroleum gas, renewable natural gas, hydrogen, and any liquid at least 85 percent of the volume of which consists of methanol.”
Effective date— The amendment made by subsection (a) shall apply to sales after the date of the enactment of this Act.