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Strikes subsection (e) of 26 U.S.C. 6427 (provisions relating to payments for certain fuels not used for taxable purposes).
Amends 26 U.S.C. 40A(c) by striking specified text.
Amends 26 U.S.C. 40B(g) by striking specified text.
Amends 26 U.S.C. 4104(a)(2) by removing a reference to 6427(e) from a list of cross-references.
Strikes paragraph (17) of subsection (b).
Revises section 87 to state that gross income includes the sustainable aviation fuel credit determined under section 40B(a).
Strikes paragraph (11) of subsection (c).
In subsection (c)(5), replaces the phrase 'also used in section 40A shall have the meaning given such term by section 40A' with 'Restoring Fuel Market Freedom Act of 2025'.
Inserts additional text after subparagraph (E) of paragraph (1) of subsection (d).
Repeals section 40 (the alcohol fuels credit) from Subpart D of part IV of subchapter A of chapter 1 of subtitle A and removes the table of sections entry for section 40.
And 9 more affected sections...
Repeals multiple federal tax incentives for low‑carbon and alternative transportation fuels by removing the alcohol fuels credit, the biodiesel credit, the sustainable aviation fuel credit, the clean fuel production credit, and related excise tax credits and expired provisions from the Internal Revenue Code. The bill also makes many conforming and clerical changes to other tax-code provisions so the statute is internally consistent after those repeals.
The changes apply to fuels produced, sold, or used after the date of enactment. The measure affects fuel producers, refiners/blenders, airlines and other fuel buyers, farmers who supply feedstocks, taxfilers claiming these credits, and IRS/admin processes that implement the credits. It eliminates ongoing tax incentives intended to support production and use of certain cleaner fuels and shifts tax treatment and reporting across many code sections.
Referred to the House Committee on Ways and Means.
Introduced January 9, 2025 by Scott Perry · Last progress January 9, 2025