Sponsors (3)
The bill simplifies the tax code and reduces federal tax expenditures by repealing multiple fuel-related credits (giving the IRS and taxpayers less complexity and raising federal receipts) at the cost of higher costs for renewable-fuel producers, weaker incentives for low‑carbon fuels, likely modest higher fuel prices for users, and transition burdens for businesses and tax administrators.
All taxpayers and the IRS: the bill removes multiple specialized fuel tax credits and related cross-references, narrowing and simplifying the Internal Revenue Code and reducing routine compliance and IRS administrative complexity.
All taxpayers / federal budget: eliminating several production and blending tax credits reduces federal tax expenditures and is likely to increase federal revenue or reduce future outlays relative to current law.
Producers, importers, and fuel blenders who no longer qualify for repealed credits: simplified tax filing and fewer credit-claiming processes (e.g., fewer elective payment/transferable-credit calculations) reduce paperwork and some administrative burdens for affected firms.
Producers and blenders of alcohol fuels, biodiesel, SAF, and other clean transportation fuels: losing multiple production and blending credits will raise their tax burdens, reduce margins, and likely reduce investment in those industries.
Consumers, airline passengers and shippers, and end users: higher production costs for fuels may be passed through as modestly higher fuel prices, fares, or shipping costs.
General public and climate policy: removing credits for biodiesel, SAF, and other low‑carbon fuels reduces a key federal incentive and could slow deployment of cleaner fuels and associated emissions reductions.
Based on analysis of 7 sections of legislative text.
Eliminates multiple federal tax credits and certain excise‑tax refund provisions for alcohol fuels, biodiesel, SAF, and clean fuel production, and updates many code cross‑references.
Introduced January 9, 2025 by Scott Perry · Last progress January 9, 2025
Repeals multiple federal tax credits and related excise-tax refund rules for low‑carbon and alternative transportation fuels. The bill removes federal tax incentives for alcohol fuels (ethanol), biodiesel, sustainable aviation fuel (SAF), and the clean fuel production credit, and it eliminates or narrows several refund and excise‑tax cross‑references that previously applied to those fuels. The changes apply to fuels produced, sold, used, or transported after the date of enactment and create broad conforming edits across the Internal Revenue Code that affect how the IRS and fuel industry apply income and excise tax rules.