Sponsors (3)
The bill simplifies the tax code and reduces federal tax expenditures by eliminating multiple fuel‑related credits, at the cost of higher production costs for cleaner fuels, slower low‑carbon fuel deployment, transitional compliance burdens, and potential price impacts for consumers and transportation sectors.
All taxpayers, fuel producers, and the IRS: the bill removes multiple specialized fuel tax credits and cross‑references, simplifying the Internal Revenue Code and reducing tax‑administration complexity.
Federal taxpayers generally: eliminating these credits modestly reduces federal tax expenditures and raises net federal receipts compared with leaving the credits in place.
Producers and importers of transportation fuels: several provisions remove specific reporting/claiming requirements (e.g., section 45Z rules and §6427(e) references), lowering ongoing paperwork obligations once transitions are complete.
Producers of alcohol fuels, biodiesel, sustainable aviation fuel, and other clean/alternative transportation fuels: lose tax credits they currently rely on, raising production costs and reducing project economics across the biofuel and clean‑fuel industries.
Consumers, fleets, and communities: reduced incentives for low‑carbon fuels are likely to slow deployment and adoption of cleaner fuel blends, hindering emissions reductions and related public‑health benefits.
Businesses that relied on these credits and the IRS/treasury: repeal creates transitional compliance costs, administrative burdens, and short‑term uncertainty as companies and tax authorities update systems, filings, and accounting.
Based on analysis of 7 sections of legislative text.
Repeals multiple federal tax credits for alcohol fuels, biodiesel, SAF, clean fuel production, and related alternative fuel mixture credits and removes related tax-code references.
Introduced January 9, 2025 by Scott Perry · Last progress January 9, 2025
Repeals a set of federal tax credits and related code provisions that support alcohol fuels, biodiesel, sustainable aviation fuel (SAF), clean fuel production, and certain alternative fuel mixture credits. It removes those credits from the Internal Revenue Code and updates many cross-references so the tax code no longer treats those fuels as credit-eligible. The changes apply to fuels produced, sold, or used after the law takes effect and will be implemented through conforming amendments across multiple tax code sections, requiring administrative updates by the IRS and Treasury and reducing tax incentives for renewable and alternative fuel producers and blenders.