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2014 Federal Motor Excise Tax Rates
What’s New: At midnight on December 31, 2013 the $1.00 per gallon
federal tax credit on biodiesel blends expired. The $1.00 per gallon credit is
still available upon timely filed claims for unclaimed biodiesel blends
created during 2013. It is unclear at this point whether Congress will
reinstate the biodiesel credit and whether any reinstatement would be
retroactive to January 1.
The following is a list of federal motor fuel excise tax rates for 2014:
Product
Rate* Cents Per/Gal
Gasoline
$.184 18.4 cpg
Gasoline (removed for gasohol blending)
$.184 18.4 cpg
Alcohol (for use in downstreamgasohol blending) $.184 18.4 cpg
Aviation Gasoline
$.194 19.4 cpg
The volume of alcohol and biodiesel blended into gasoline or clear diesel
are taxed at full federal rate.
Alcohol Blender’s Credit
(Expired 12/31/11)
Biodiesel Blender’s Credit
(Expired 12/31/13)
Diesel (clear)
$.244 24.4 cpg
Diesel (dyed)
$.001 1/10th cpg
Diesel (used in trains)(dyed)**
$.001 1/10th cpg
Diesel (removed for blending with biodiesel)
$.244 24.4 cpg
Biodiesel (removed for blending with diesel)
$.244 24.4 cpg
Kerosene (clear)
$.244 24.4 cpg
Kerosene (dyed)
$.001 1/10th cpg
Kerosene (clear - non-commercial aviation)*** $.219 21.9 cpg
Kerosene (clear - for use in non-taxable aviation) $.001 1/10th cpg
Kerosene (clear - for use in commercial aviation) $.044 4.4 cpg
Propane
$.183 18.3 cpg
Compressed Natural Gas
$.183 18.3 gge
Liquefied Natural Gas
$.243 24.3 cpg
* Rates include the $.001 cpg federal Leaking Underground Storage Tank (LUST)
tax. The LUST tax is non-refundable.
**This tax is paid by the railroads, NOT by petroleummarketers.
*** Marketers pay $.244 cpg at the rack, user’s rate is $.219. Ultimate vendor claim
is $.025 cpg. The ultimate vendor is the only party that can make the claim for 2.5
cpg. Ultimate vendor must have a certificate from the ultimate purchaser verifying
the fuel is used for non-commercial aviation. Ultimate vendor must have an IRS
637 UA registration to file claim.
Congress Approves Two-Year Federal Budget
Congress recently approved a two-year federal budget agreement that
increases the sequester-set budget level from $967 billion to $1.012 trillion
for the current fiscal year and $1.014 trillion for FY15, and reduces
automatic spending cuts under sequestration by $63 billion (33 percent)
over two years. It was paid for by various cost saving measures and other
“non-tax” revenue; and reduces the federal budget deficit by at least $20
billion. As reported last week, there are some other interesting measures
included in the “Bipartisan Budget Act.” The new budget deal will:
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billion, which could help restore funding for the federal LIHEAP
program and for the implementation and enforcement of new
commodity trading rules;
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1.5 million acres of the U.S.-Mexican border estimated to contain 172
million barrels of oil and 304 billion cubic feet of natural gas ($25 million
in new revenue over ten years);
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program that allows SPR contributions to be made in lieu of royalty
payments (saving $3.2 billion over ten years);
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million over ten years);
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ultra-deep-water and unconventional oil and gas development (saving
$40 million over ten years); and
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years).
NEFI Attends “Farewell” Reception for Futures Regulator
NEFI President & CEO Michael C. Trunzo and Vice President Jim Collura
attended a private “farewell” reception for Gary Gensler, outgoing
Chairman of the Commodity Future Trading Commission (CFTC). Gensler
leaves behind an unprecedented legacy. He not only refocused the
agency on the needs of consumers and small hedgers, but he was
instrumental in shaping the 2010 Wall Street Reform law and overseeing
its implementation. Assistant Treasury Secretary Tim Massad has been
nominated to replace Gensler. His task will largely be enforcement of this
new law and its defense in the courts.
Opponents Seek to Derail Keystone
XL Over Alleged Conflict of Interest
Critics of the Keystone XL pipeline in the U.S. House of Representatives
recently urged the State Department not to release an environmental
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concerning the contractor writing the report are resolved. The U.S. State
Department is overseeing the review of the pipeline because it crosses an
international border. The agency is preparing a final version of an
environmental review that will assess whether Keystone would contribute
to greenhouse gas emissions, which many scientists believe are warming
the planet. A draft of the report released in March found Keystone would
have only a minimal impact on climate change because the oil sands
would continue to be extracted even without the pipeline.
In a letter sent to President Barack Obama signed by 25 House
Democrats, lawmakers charged that the State Department overseeing
permit review of TransCanada Corp’s $5.4 billion, 870-mile pipeline project
between Alberta, Canada and U.S. Gulf Coast refineries, “apparently
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environmental impact statement and the Calgary-based pipeline
company. Keystone critics, including the environmental group Friends of
the Earth, allege that ERM Group, Inc. hid its connections to TransCanada
when it bid to write the analysis. The consulting firm worked on an Alaskan
pipeline jointly owned by TransCanada and ExxonMobil. The Democrats
wrote that it would be “unwise and premature” for the State Department
to release the analysis before the agency’s inspector general completes a
review, which they said could be released in February.
