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2026-04-08 10:34:44
Senators criticize US alternative fuel tax credit: LNG carriers receive huge subsidies, accused of waste】 (1) The Alternative Fuel Tax Credit, signed by former President George W. Bush in 2005, was originally intended to reduce dependence on oil by subsidizing small motorboats to transition to alternative fuels such as natural gas and propane. (2) Critics point out that LNG carriers burn LNG that evaporates naturally during transport, which does not help to transition away from liquid fuels such as marine fuels—otherwise, these evaporated gases would either be released or recooled. Senators stated in a letter that the credit wastes taxpayers' money and does nothing to help the environment, reduce costs, or reduce dependence on oil. Seven senators, including Merkley, Warren, and Schumer, signed the letter. (3) The credit was originally designed for motorboats less than 65 feet (20 meters) long, while LNG carriers can be as long as three football fields. Cheniere Energy disclosed in February that it received a $370 million tax credit as a result, but the company declined to comment. The US Treasury Department did not respond. Senate Democrats have limited power due to their minority status, but this could change after the November midterm elections.
