Senator Grassley Comments On Tax Extenders in Upcoming Spending Legislation

There had been some discussion on Capitol Hill in late January to potentially attach a tax extenders package to upcoming legislation needed to avert a government shutdown. In an interview on Thursday, January 31, Sens. John Thune (R-SD) and Chuck Grassley (R-IA) indicated that a tax extenders package might get attached to the upcoming spending package if negotiators also decide to take on matters such as extending the federal debt limit or raising the budget caps for two more years. On the other side of the aisle, House Ways and Means Chairman Richard Neal (D-MA) said Democrats are also looking into the possibility of addressing tax extenders.

The tax extenders package would likely include provisions important to petroleum marketers. One provision that could be included is the $1 per gallon biodiesel blender’s tax credit in which Congress would pass a retroactive renewal and gradual phase down of the credit. Additionally, the oil spill liability tax (OSLT) could also be renewed in the tax extenders package. PMAA, NACS, AFPM, SIGMA and API sent a letter to Congressional leadership urging them to oppose a retroactive renewal of the OSLT. Click here to read the letter.

Other credits that could be included in the tax extenders package are the credits for the installation of qualified alternative fuel vehicle refueling property in a home or business; the Alternative Fuels Excise Tax Credit for the use of propane as a transportation fuel, known as the “propane autogas tax credit;” and the Section 25C tax credit for the installation of qualified high-efficiency residential HVAC systems and certain energy-saving home retrofits.