Top Senate Democrats are pressing the Internal Revenue Service over its apparent decision to classify liquefied natural gas tankers as “motorboats,” a move that unlocked hundreds of millions of dollars in tax subsidies for a major exporter.
Sens. Jeff Merkley (D-Ore.) and Minority Leader Chuck Schumer (D-N.Y.) fired off a letter Tuesday to Treasury Secretary Scott Bessent — who is also serving as IRS commissioner — seeking clarity on whether the agency has begun granting credits under the Alternative Fuel Excise Tax (AFET) to LNG exporters.
“We write to clarify whether the Internal Revenue Service has determined that companies using liquefied natural gas (LNG) for propelling LNG tankers qualify for credits under the Alternative Fuel Excise Tax (AFET),” the senators wrote.
They warned that extending the credit to LNG tankers would “waste taxpayer money” without delivering environmental or economic benefits, arguing it would neither lower costs for consumers nor reduce U.S. dependence on oil.
