Sponsors (9)
The bill lowers federal gasoline taxes for consumers when pump prices are high and preserves highway and tank-cleanup funding by shifting the shortfall to the general fund — providing near-term relief at the risk of increased pressure on federal budgets and potential cash-flow or administrative risks.
Drivers and consumers pay lower federal gasoline excise taxes in months when the national average pump price exceeds $3.99/gal, reducing retail fuel costs.
Transportation workers, commuters, and state highway programs see Highway Trust Fund revenues maintained because the Treasury is required to transfer amounts equal to lost excise-tax receipts, protecting road construction and maintenance funding.
Utilities, energy companies, and communities dependent on tank cleanup have Leaking Underground Storage Tank (LUST) cleanup funding preserved because transfers replace any lost excise-tax receipts attributable to the LUST financing rate.
Taxpayers (the general fund) bear the cost of replacing lost excise-tax revenue, increasing pressure on federal budgets and potentially crowding out other spending priorities.
Transportation programs and tank-cleanup efforts could experience temporary cash-flow disruptions if Treasury transfers are delayed or mismanaged, risking project delays or interruption of cleanup work.
Oil and gas producers, including small operators, lose certain tax benefits (disallowed intangible drilling cost deductions and some credits) during covered high-price months, raising their tax liabilities.
Based on analysis of 1 section of legislative text.
Automatically reduces the federal gasoline excise tax when national average gasoline prices exceed $3.99/gal, reimburses trust funds from the general fund, and temporarily disallows certain oil tax benefits.
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
Temporarily reduces the federal excise tax on certain fuels in any month when the national average price of gasoline is above $3.99 per gallon: the tax is cut by one cent for each cent the average price exceeds $3.99, but never below zero. The Treasury must transfer from the general fund to reimburse the Highway Trust Fund and the Leaking Underground Storage Tank Trust Fund for the lost receipts, and the bill disallows selected oil-industry tax benefits during months when the excise tax suspension applies. The bill offsets the reduced excise-tax receipts by directing general fund transfers to the trust funds and by denying the intangible drilling costs deduction, the enhanced oil recovery credit, and the marginal well credit for costs/production in months covered by the suspension. The tax‑benefit changes apply to taxable years beginning after December 31, 2025.