The IRS is facing a Senate investigation after granting $370 million in alternative fuel tax credits to Cheniere Energy. The credits were issued for the use of boil-off gas to power LNG vessels, a standard operational practice that critics argue provides no real carbon reduction benefit. This case highlights a critical gap in climate policy where legal interpretations of alternative fuels may allow companies to claim subsidies for activities they would have performed regardless of the incentive. Senators are now questioning if the definition of motorboats was improperly applied to massive LNG carriers.
