Sponsors (9)
The bill lets eligible diesel/kerosene users reclaim excise taxes and gives a clear refund process, but does so without interest and modestly increases federal outlays.
Owners/operators who remove indelibly dyed diesel or kerosene can recover federal fuel excise taxes they previously paid for qualifying removals.
Refunds are processed as credit-provision refunds subject to federal offset rules, providing claimants a clear and predictable administrative path for payment.
Expanding refundable claims increases potential outlays from the Treasury, which could modestly raise fiscal costs or reduce available revenue for other programs.
Refunds bear no interest, so claimants receive no compensation for the time value of funds they paid earlier to the Treasury.
Based on analysis of 2 sections of legislative text.
Authorizes non‑interest refunds for terminal diesel or kerosene removals taxed under section 4081 that were indelibly dyed and exempt under section 4082(a).
Creates a new Internal Revenue Code refund provision allowing taxpayers who paid the diesel/kerosene excise tax to obtain a refund (without interest) when they can show the fuel removed was indelibly dyed and therefore tax-exempt. It updates cross-references in related tax code sections and becomes effective for qualifying fuel removed on or after 180 days after enactment.
Official title: To amend the Internal Revenue Code of 1986 to provide refunds with respect to certain dyed fuels that are exempt from tax and with respect to which tax was previously paid.
Introduced March 14, 2025 by Gwendolynne S. Moore · Last progress March 14, 2025