AGC Helps Enact Fuel Tax Increase for Inland Waterways Infrastructure

On Dec. 16, as part of the tax extenders legislation, the Senate passed a provision that would increase a fuel tax to benefit inland waterway lock and dam construction and maintenance projects. The provision would raise the fuel tax from 20 cents to 29 cents per gallon on barges using the inland waterway system and will take effect after April 1, 2015. For the last several years, AGC has worked with a coalition of commercial barge, agricultural and labor interests in pressing for this increase in inland waterways infrastructure funding. The Inland Waterways Fuel Tax generates between $75 million to $85 million per year that is matched by the federal treasury, boosting its total value to between $150 million to $170 million annually. An increase in this tax by 1 cent-per-gallon is estimated to produce additional revenue of between $3 million and $4 million per year, meaning a 9-cent raise in the fuel tax would equate to $27 million to $36 million in additional tax revenue annually, which would be matched by the federal government. For more information, please contact Jimmy Christianson at (703) 837-5325 or christiansonj@agc.org.