NE Florida News

Today, members of the U.S. Congress introduced a legislative measure known as the Maritime Fuel Tax Parity Act. This bill aims to amend an existing provision in the tax code by exempting alternative fuels for marine vessels, such as liquefied natural gas (LNG), from Federal Highway Trust Fund excise taxes. Congressman Aaron Bean, a member of the Ways and Means Committee, introduced the bill alongside Congressmen John Rutherford, Vern Buchanan, John Garamendi, and Congresswoman Jill Tokuda.

Congressman Bean articulated the potential benefits of the bill by stating, “Expanding the use of alternative fuels like LNG will strengthen Jacksonville’s maritime industry and allow maritime vessels to use LNG as a fuel source without being penalized by an onerous tax and compliance burden. I thank Congressman Rutherford for his leadership on this bill, which will modernize our tax code and bring marine fuels into the 21st century.”

Congressman Rutherford supported the initiative by highlighting Jacksonville's significant role in pioneering LNG-powered containerships. He emphasized the importance of legislative support for the maritime industry as it seeks innovative energy solutions, saying, “We should be encouraging, not penalizing, our maritime industry as they find alternative and innovative ways to power American vessels.”

Congressman Buchanan echoed the necessity of protecting Florida’s ports from tax burdens and enhancing economic competitiveness. “Florida’s ports play a vital role in fueling our economy, supporting tens of thousands of good-paying jobs and helping move goods across the globe,” he said. He noted the specific economic impact of SeaPort Manatee in his district.

The bill signifies a shift in how maritime fuels are taxed, where currently, diesel enjoys a tax exemption that alternative fuels do not. The situation has inadvertently discouraged the use of cleaner fuels like LNG in marine transportation.

Supporting data from the International Energy Agency’s January 2025 Quarterly Gas Report suggests a forthcoming increase in LNG-fueled ships. Current projections indicate the number of such vessels is expected to nearly double by 2028, further supporting the rationale behind the proposed legislative measures.