SYMPOSIA PAPER Published: 01 January 1973

Current and Pending Legislation for Gaseous Fuels


Treatment of LP-Gas under conventional tax codes is a barrier to development and pollution control. Tax revenue is minimal, and value vanishes when related to social value of environmental improvement. The states of New Jersey, Kentucky, and Washington have enacted specific legislation providing a tax break. Ten other states tax LP-Gas at a lower rate than diesel—with three using a lower plain than gasoline.

Unintentional prohibition of conversion to LP-Gas use in federal and state regulation, directed at preventing tampering with pollution control equipment has presented an initial problem, but has been corrected when brought to authority attention. Provision for federal certification of control devices, which could include LP-Gas conversion equipment, will prove helpful.

All gaseous fuels should be accorded a tax identity separate from liquid fuels. Pending federal legislation would accomplish this and equalize present Internal Revenue Service interpretative discrimination that favors compressed natural gas.

Author Information

Sagan, V., R.
Legal Services, National LP-Gas Association, Chicago, Ill.
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Developed by Committee: D02
Pages: 119–124
DOI: 10.1520/STP44740S
ISBN-EB: 978-0-8031-6043-9
ISBN-13: 978-0-8031-6197-9