Earlier this week, Senators unveiled a budget agreement, which increased defense and non-defense spending, and also included a group of tax extenders, in the hopes of avoiding a second government shut down.  The three dozen tax benefits, known collectively as “extenders,” had been part of a 2015 legislative package that expired at the end of 2016.  Also included in the Senate budget deal are tax breaks for disaster victims of Hurricanes Harvey, Irma, and Maria and the wildfires in California.

In addition to several energy related tax extenders, there are two key extenders of interest to fuel retailers – the biodiesel blenders’ tax credit and the oil spill liability trust fund financing rate.  The biodiesel blenders’ tax credit is extended retroactively for 2017 only.  NACS supports extending the tax credit and has been working closely with other fuel retail groups to pass it and stop efforts to shifting the tax benefit from the blender to the producer.

The oil spill liability trust fund financing rate provision expired at the end of 2017 and was extended prospectively for 2018.  The 9 cent per barrel tax on domestic crude oil and imported crude oil and petroleum products generates an average of $500 million in federal revenue for the trust fund.  The oil and gas industry had opposed applying the tax retroactively due to transactional concerns.

Congress missed the midnight deadline last night to avoid a shutdown of the federal government, but passed the budget deal just before 2:00 this morning.  The House passed the bill after 5:00 this morning despite opposition from both republicans and democrats and sent it to White House for the president to sign sometime today.