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2014 Federal Motor Fuel Excise Tax Rates
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PMAA Regulatory Report - January 8, 2014
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SUBJECT:
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IRS - Federal Motor Fuel Excise Tax Rates
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ISSUE:
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2014 Federal Motor Fuel Excise Tax Rates
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PMAA CONTACT:
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Mark S. Morgan, Regulatory Counsel - mmorgan@pmaa.org
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DATE:
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January 8, 2014
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2014 FEDERAL MOTOR FUEL EXCISE TAX RATES
What's New: The federal $1.00 per gallon biodiesel blender's credit expired at midnight on December 31, 2013. Biodiesel blends created before midnight December 31, 2013 are still eligible for the credit upon a timely return made pursuant to established filing procedures. Biodiesel blends created after midnight December 31, 2013 are not eligible for the $1.00 per gallon credit. Currently, lawmakers are working to reinstate the biodiesel blender's credit. Whether these efforts will be successful is not known at this point. However, in the event that Congress reinstates the biodiesel credit retroactive to January 1, blenders should continue to maintain detailed blending records. All other federal motor fuel excise tax rates remain the same as 2013 rates.
The following federal motor fuel excise tax rates apply for 2014:
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Product
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Rate*
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Cents Per/Gal
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Gasoline
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$.184
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18.4 cpg
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Gasoline (removed for gasohol blending)
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$.184
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18.4 cpg
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Alcohol (for use in downstream gasohol blending)
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$.184
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18.4 cpg
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Aviation Gasoline
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$.194
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19.4 cpg
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The volume of alcohol and biodiesel blended into gasoline or clear diesel are taxed at full federal rate.
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Alcohol Blender's Credit
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(Expired 12/31/11)
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Biodiesel Blender's Credit
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(Expired 12/31/13)
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Diesel (clear)
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$.244
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24.4 cpg
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Diesel (dyed)
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$.001
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1/10th cpg
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Diesel (used in trains)(dyed)**
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$.001
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1/10th cpg
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Diesel (removed for blending with biodiesel)
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$.244
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24.4 cpg
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Biodiesel (removed for blending with diesel)
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$.244
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24.4 cpg
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Kerosene (clear)
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$.244
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24.4 cpg
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Kerosene (dyed)
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$.001
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1/10th cpg
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Kerosene (clear - non-commercial aviation)***
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$.219
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21.9 cpg
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Kerosene (clear - for use in non-taxable aviation)
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$.001
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1/10th cpg
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Kerosene (clear - for use in commercial aviation)
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$.044
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4.4 cpg
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Propane
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$.183
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18.3 cpg
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Compressed Natural Gas
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$.183
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18.3 cpg
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Liquefied Natural Gas
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$.243
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24.3 cpg
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* Rates include the $.001 cpg federal Leaking Underground Storage Tank (LUST) tax. The LUST tax is non-refundable.
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**This tax is paid by the railroads, NOT by petroleum marketers.
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*** 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.
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