“Compressed natural gas” (CNG); alternative fuel, alternative fuel mixture credits

“Compressed natural gas” (CNG); alternative fuel

The Office of the IRS Chief Counsel publicly released a field advice memorandum* providing the definition of compressed natural gas (CNG) for purposes of section 6426. 20151001F (release date March 6, 2015, and dated December 10, 2014).

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The field advice memo [PDF 108 KB] defines CNG as “natural gas in its gaseous form that is contained under a pressure of approximately 2,400 to 3,600 psi and of the quality required for use as a fuel in vehicles.”

The field advice memo notes that this definition is consistent with the statutory language and legislative histories of sections 4041 and 6426 in which CNG is referenced, as well as other commonly used guidance regarding CNG.


*Field advice memo documents are prepared by IRS field attorneys in the Office of Chief Counsel, are reviewed by an Associate Office, and are subsequently issued to IRS field or service center employees. The memo cannot be used or cited as precedent.

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