Maritime Fuel Tax Parity Act

Key Points

• This bill would give a tax break to ships that use alternative fuels while traveling between different ports on the same U.S. coast. Currently, these ships often have to pay a special tax on their fuel that other international or long-distance ships are allowed to skip.
• The goal is to make it cheaper for companies to move goods by water along the Atlantic or Pacific coasts. By lowering the cost of fuel, the bill aims to encourage more shipping trade within the United States and its territories.
• The tax exemption would apply to fuel sales made as far back as January 1, 2024. This means shipping companies that already paid these taxes could potentially get that money back or stop paying it for future trips.
• This change specifically targets alternative fuels, which are often cleaner options than traditional heavy shipping oil. By making these fuels cheaper through tax breaks, the policy could help lower the environmental impact of moving goods between American cities.

Impact Analysis

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