Clarification of Changes to the Alternative Fuel Mixture Credit Contained in H.R. 1865
Floor Speech
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Mr. BRADY. Madam Speaker, in December Congress addressed a number of expired or expiring tax provisions, commonly known as ``tax extenders,'' by passing H.R. 1865 as part of year-end, FY'20 spending measure.
For the most part, these tax provisions were simply extended seamlessly through 2020, which I viewed as a wasted opportunity to create real certainty around these provisions for taxpayers.
Additionally, one provision extending a fuel excise tax credit known as the Alternative Fuel Mixture Credit (AFMC) contained modifications prohibiting the blending of certain categories of fuels in order to claim the credit. These fuel categories had been part of the AFMC and the related Alternative Fuel Credit since both were created in a Surface Transportation bill in 2005, and they had also been extended multiple times since then in past tax extenders bills. The intended purpose of these provisions was to reduce the United States' dependence on foreign oil and to encourage cheaper, cleaner burning fuels (whether for transportation or other uses).
One of the longstanding fuel categories eliminated in H.R. 1865 was liquified petroleum gas. Since enacted, the AFMC had provided a credit to taxpayers for mixtures of liquefied petroleum gas, including propane, and taxable fuel. The modification in H.R. 1865 eliminates the credit for any mixture that includes any type of liquefied petroleum gas.
Madam Speaker, I have long been an opponent of retroactive tax increases, and there are currently several taxpayers in disputes with the Internal Revenue Service over whether they can properly claim the AFMC on past tax returns.
I will note that the subsection of H.R. 1865 that eliminated the longstanding classes of fuels from the AFMC also contained ``no inference'' language stating:
``Nothing contained in this subsection or the amendments made by this subsection shall be construed to create any inference as to a change in law or guidance in effect prior to enactment of this subsection'' (enactment occurred when H.R. 1865 was signed into law on December 20, 2019).
The Congressional intent of this ``no inference'' language is unambiguous--this provision should ensure a fair day in court for taxpayers in legitimate disputes with the IRS over the AFMC.
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