H.R. 311

119th CONGRESS 1st Session

To amend the Internal Revenue Code of 1986 to repeal the alcohol fuels credit, the biodiesels fuel credit, the sustainable aviation fuel credit, the clean fuel production credit, the alcohol fuel, biodiesel, and alternative fuel mixtures credit, and other related provisions.

IN THE HOUSE OF REPRESENTATIVES · January 9, 2025 · Sponsor: Mr. Perry · Committee: Committee on Ways and Means

Table of contents

• H.R. 311
  • SEC. 1. Short title; references
  • SEC. 2. Repeal of Alcohol fuels credit
  • SEC. 3. Repeal of biodiesels fuel credit
  • SEC. 4. Repeal of sustainable aviation fuel credit
  • SEC. 5. Repeal of clean fuel production credit
  • SEC. 6. Repeal of alcohol fuel, biodiesel, and alternative fuel mixtures credit
  • SEC. 7. Repeal of expired provisions relating to payments for certain fuels not used for taxable purposes

SEC. 1. Short title; references

• (a) Short title
  • This Act may be cited as the Restoring Fuel Market Freedom Act of 2025.
• (b) Amendment of 1986 Code
  • Except as otherwise expressly provided, whenever in this Act an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Internal Revenue Code of 1986.

SEC. 2. Repeal of Alcohol fuels credit

• (a) In general
  • Subpart D of part IV of subchapter A of chapter 1 of subtitle A is amended by repealing section 40 (and by striking the item relating to such section in the table of sections for such subpart).
• (b) Conforming amendments
  • is amended by inserting after . Section 25C(d)(3)(B)
  • is amended by striking paragraph (3). Section 38(b)
  • is amended— Section 40A
    • in subsection (d)(1),by striking in the matter following subparagraph (B), and
    • in subsection (f)(3), by striking and inserting .
  • is amended by striking paragraph (1). Section 87
  • is amended by inserting after . Section 168(l)(2)(A)
  • is amended by striking paragraph (3). Section 196(c)
  • is amended by striking every person producing or importing sustainable aviation fuel (as defined in section 40B), and every person producing second generation biofuel (as defined in section 40(b)(6)(E))and inserting and every person producing or importing sustainable aviation fuel (as defined in section 40B). Section 4101(a)(1)
  • is amended by striking . Section 4104(a)(1)
  • is amended— Section 6426
    • in subsection (b)(2)(C), by striking described in section 40(h)(3)(B)and all that follows through and inserting 2007,,
    • in subsection (g), by inserting after , and
    • in subsection (h), by striking section 40, 40A,and inserting section 40A.
• (c) Effective date
  • The amendments made by this section shall apply to fuels produced after the date of the enactment of this section.

SEC. 3. Repeal of biodiesels fuel credit

• (a) In general
  • Subpart D of part IV of subchapter A of chapter 1 of subtitle A is amended by repealing section 40A (and by striking the item relating to such section in the table of sections for such subpart).
• (b) Conforming amendments
  • Section 25C(d)(3)(A) is further amended by inserting after .
  • is amended by inserting after . Section 30C(C)(1)(B)(ii)(I)
  • Section 38(b) is further amended by striking paragraph (17).
  • Section 87 (as amended by is amended to read as follows: section 2)
    • Gross income includes the sustainable aviation fuel credit determined with respect to the taxpayer for the taxable year under section 40B(a).
  • Section 196(c) is further amended by striking paragraph (11).
  • Section 4101(a)(1) is further amended by striking .
  • Section 4104(a)(1) is further amended—
    • by striking sectionsand inserting section, and
    • by striking .
  • Section 6426 is further amended—
    • in subsection (c)(5), by striking and inserting , and
    • in subsection (h), by striking .
  • is amended by inserting after . Section 7704(d)(1)(E)
• (c) Effective date
  • The amendments made by this section shall apply to fuels sold or used after the date of the enactment of this section.

SEC. 4. Repeal of sustainable aviation fuel credit

• (a) In general
  • Subpart D of part IV of subchapter A of chapter 1 of subtitle A is amended by repealing section 40B (and by striking the item relating to such section in the table of sections for such subpart.
• (b) Conforming amendments
  • Section 38(b) is further amended by striking paragraph (35).
  • Part II of subchapter B of chapter 1 of subtitle A is amended by repealing section 87 (and by striking the item relating to such section in the table of sections for such part).
  • is amended by striking paragraph (7). Section 56(a)
  • Section 4101(a)(1) is further amended by striking .
  • Section 6426 is further amended—
    • by striking subsection (h), and
      • (4) References to section 40B
        • Each reference in this subsection to section 40B shall be treated as a reference to such section as such section was in effect on the day before the date of the enactment of the .
    • in subsection (k), by adding at the end the following new paragraph:
• (c) Effective date
  • The amendments made by this section shall apply to fuel sold or used after the date of the enactment of this section.

SEC. 5. Repeal of clean fuel production credit

• (a) In general
  • Subpart Do f part IV of subchapter A of chapter 1 of subtitle A is amended by repealing section 45Z (and by striking the item relating to such section in the table of sections for such subpart).
• (b) Conforming amendments
  • is amended by striking paragraph (9). Section 6417(b)
  • is amended by striking clause (viii). Section 6418(f)(1)(A)
  • Section 13704 of is amended by striking subsection (b). Public Law 117–169
• (c) Effective date
  • The amendments made by this section shall apply to transportation fuels produced after the date of the enactment of this section.

SEC. 6. Repeal of alcohol fuel, biodiesel, and alternative fuel mixtures credit

• (a) In general
  • Subchapter B of chapter 65 of subtitle F is amended by repealing section 6426 (and by striking the item relating to such section in the table of sections for such subchapter).
• (b) Conforming amendments
  • Section 4101(a)(1) is further amended by striking .
  • Section 4104(a)(2) is further amended by striking .
  • Section 6427 is further amended
  • Section 7704(d)(1)(E), as amended by section 4(b)(7), is further amended by inserting after .
  • is amended by striking . Section 9503(b)(1)
• (c) Clerical Amendment
  • The table of sections for subchapter B of chapter 65 of subtitle F is amended by striking the item relating to section 6426.
• (d) Effective date
  • The amendments made by this section shall apply to fuel used or sold after the date of the enactment of this section.

SEC. 7. Repeal of expired provisions relating to payments for certain fuels not used for taxable purposes

• (a) In general
  • is amended by striking subsection (e). Section 6427
• (b) Conforming amendments
  • is amended by striking . Section 40A(c)
  • is amended by striking . Section 40B(g)
  • Section 4104(a)(2) is further amended by striking 4041(b)(2), 6426, or 6427(e)and inserting 4041(b)(2) or 6426.
  • is amended by striking paragraph (3). Section 6427(i)
• (c) Effective date
  • The amendments made by this section shall apply to fuel sold or used after the date of the enactment of this section.