“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).

Related content

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.

© 2016 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us

 

Request for proposal

 

Submit

KPMG's new digital platform

KPMG's new digital platform