Fuel mixtures of butane and gasoline qualify their producers for $391 million in tax refunds due to alternative fuel mixture credits, three petroleum companies told a federal court in Ohio.
Marathon Petroleum Co., Tesoro Alaska Co., and Tesoro Refining & Marketing Co. sued the government for denying that their gas mixtures qualify as alternative fuels under IRC Section 6426. In response to a US motion for summary judgment against their tax refund claims, the trio argued Monday that the US failed for years to abide by the statute’s definition of alternative fuels.
The alternative fuel mixture credit statute contains …