Tar Sands Tax Loophole Elimination Act

This bill makes it clear that oil from tar sands and oil shale counts as “crude oil” for the federal tax on petroleum. It also lets the Treasury Department add other fuel types to the tax if they are widely produced, move by pipeline, ship, rail, or truck, and fit the federal definition of oil that can be hazardous if spilled.

Key points:

• What changes: Oil from tar sands and oil shale is taxed like crude oil. Treasury can also bring similar fuels under the same tax if they pose spill risks and are commonly transported as fuels.
• Who is affected: Companies that produce, import, or transport these fuels; possibly fuel buyers if costs change.
• When: The changes take effect on the day the bill becomes law.