Sponsors (10)
Automatically reduces the federal fuel excise tax when national average gasoline prices exceed $3.99/gal, reimburses highway and tank cleanup trust funds from the Treasury, and temporarily disallows certain oil tax benefits during affected months.
The bill temporarily lowers pump prices for consumers when prices exceed $3.99/gal while preserving transportation and tank-cleanup funding by shifting the cost to the federal general fund and reducing certain producer tax benefits, trading immediate consumer relief and maintained program funding for increased federal budgetary pressure and industry impacts.
Drivers and middle-class households pay lower federal gasoline excise taxes in months when the national average pump price exceeds $3.99/gal, lowering retail fuel costs.
Highway Trust Fund programs (roads, bridges, transit) continue to receive funding because Treasury is required to transfer amounts equal to suspended excise tax receipts, helping avoid interruptions to transportation projects and worker paychecks.
Leaking Underground Storage Tank (LUST) cleanup and related environmental remediation funding are preserved via required transfers that replace any lost excise-tax-derived receipts, sustaining cleanup work and related contractor activity.
All taxpayers bear the cost because the general fund must replace suspended excise tax revenue, increasing federal budgetary pressure and potentially crowding out other priorities.
If Treasury transfers are delayed or mismanaged, transportation and cleanup programs could face temporary cash-flow disruptions despite the replacement requirement, risking project slowdowns or payment delays for workers and contractors.
Oil and gas producers (including smaller operators) lose certain tax benefits during covered high-price months because the bill disallows intangible drilling cost deductions and some credits for those months, reducing industry cash flow and possibly investment.
Based on analysis of 1 section of legislative text.
Official title: To amend the Internal Revenue Code of 1986 to temporarily suspend certain fuel excise taxes for fuel separated during periods in which the national average price of gasoline exceeds $3.99 per gallon, and to prohibit certain credits or deductions for oil and gas companies during such periods.
Introduced April 30, 2026 by Brendan Francis Boyle · Last progress April 30, 2026
Reduces the federal excise tax on certain fuels automatically in any month the national average price of gasoline exceeds $3.99 per gallon: the tax is cut by 1 cent for each cent the price is above $3.99, but not below zero. The Treasury must reimburse the Highway Trust Fund and the Leaking Underground Storage Tank Trust Fund for revenues lost because of the suspension. Offsets the revenue loss by temporarily denying three oil- and gas‑related tax benefits (intangible drilling costs deduction, enhanced oil recovery credit, and marginal well credit) for any month in which the excise tax suspension applies. The changes apply to taxable years beginning after December 31, 2025 (effectively January 1, 2026).