House Introduces Tax Extenders Package
House Introduces Tax Extenders Package
The last week of November, news broke that House members had released their tax extenders package in an effort to reconcile their bill with the Senate version before the end of 2018. The highlight of the release was the word that the House package would reinstate the $1 per gallon biodiesel blenders tax credit for 2018 and extend the availability of the credit through 2024. Also included in the House package is language renewing the Oil Spill Liability Tax (OSLT) through December 31, 2019. The 9 cents per barrel OSLT tax is imposed on crude oil at the refinery gate. Proceeds from the OSLT go into a trust fund used by the Coast Guard to pay for clean-up after accidents like oil spills. In December of 2017, Congress allowed the OSLT to lapse until it was finally reinstated in March of 2018. The lapse of the OSLT created unnecessary confusion among refiners, suppliers, and marketers and industry are advocating for the renewal of the OSLT prior to December 31st. In the event that Congress is unable to address a tax extenders package, the industry will advocate that Congress address the OSLT in the new year by extending it and making it retroactive.
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