The Trump administration has approved a $370 million tax break for liquefied natural gas exporter Cheniere, allowing the company to claim a federal “alternative fuel” credit for powering its massive LNG tankers with the very fuel they transport, The Washington Post writes.
The IRS ruling, disclosed in the company’s annual report, covers credits from 2018 through 2024 and grants a cash payment after years of uncertainty.
The incentive was originally designed to promote cleaner-burning fuels such as biodiesel and ethanol and applies to certain natural gas-powered “motorboats,” typically defined as vessels under 65 feet. Environmental advocates and tax experts argue the credit was never intended for ocean-going tankers and question how the IRS reached its conclusion.
The decision has drawn political scrutiny, with critics linking it to broader fossil fuel policy shifts under President Donald Trump and raising concerns that other LNG exporters could seek similar retroactive payments.
The Washington Post has the full story.
