I
119THCONGRESS
1
STSESSION H. R. 2932
To amend the Internal Revenue Code of 1986 to establish a tax credit
for the production of aviation gasoline that is free of tetra-ethyl-lead.
IN THE HOUSE OF REPRESENTATIVES
APRIL17, 2025
Mr. G
ARCIAof California (for himself and Mr. OBERNOLTE) introduced the
following bill; which was referred to the Committee on Ways and Means
A BILL
To amend the Internal Revenue Code of 1986 to establish
a tax credit for the production of aviation gasoline that
is free of tetra-ethyl-lead.
Be it enacted by the Senate and House of Representa-1
tives of the United States of America in Congress assembled, 2
SECTION 1. SHORT TITLE. 3
This Act may be cited as the ‘‘Cutting Lead Exposure 4
and Aviation Relief Skies Act’’ or the ‘‘CLEAR Skies 5
Act’’. 6
SEC. 2. AVIATION GASOLINE PRODUCTION CREDIT. 7
(a) I
NGENERAL.—Subpart D of part IV of sub-8
chapter A of chapter 1 of the Internal Revenue Code of 9
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1986 is amended by adding at the end the following new 1
section: 2
‘‘SEC. 45BB. AVIATION GASOLINE PRODUCTION CREDIT. 3
‘‘(a) A
MOUNT OFCREDIT.— 4
‘‘(1) I
N GENERAL.—For purposes of section 38, 5
the aviation gasoline production credit determined 6
under this section for the taxable year is an amount 7
equal to the product of— 8
‘‘(A) the number of gallons of qualified 9
aviation gasoline produced by the taxpayer and 10
sold by the taxpayer in the manner described in 11
paragraph (5) during the taxable year, multi-12
plied by 13
‘‘(B) the applicable amount with respect to 14
such gasoline. 15
‘‘(2) A
PPLICABLE AMOUNT .—The applicable 16
amount under this paragraph is equal to— 17
‘‘(A) in the case of qualified aviation gaso-18
line sold during calendar year 2026, $1.25, 19
‘‘(B) in the case of qualified aviation gaso-20
line sold during calendar year 2027, $1.20, 21
‘‘(C) in the case of qualified aviation gaso-22
line sold during calendar year 2028, $1.15, 23
‘‘(D) in the case of qualified aviation gaso-24
line sold during calendar year 2029, $1.10, and 25
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‘‘(E) in the case of qualified aviation gaso-1
line sold during calendar year 2030, $1.05. 2
‘‘(3) Q
UALIFIED AVIATION GASOLINE .—For 3
purposes of this section, the term ‘qualified aviation 4
gasoline’ means aviation gasoline— 5
‘‘(A) which is— 6
‘‘(i) defined in section 436.101 of title 7
10, Code of Federal Regulations, 8
‘‘(ii) free from tetra-ethyl-lead, and 9
‘‘(iii) produced by the taxpayer in the 10
United States, 11
‘‘(B) which meets the requirements of any 12
aviation fuel standards promulgated pursuant 13
to section 44714 of title 49, United States 14
Code, and 15
‘‘(C) the transfer of which to the fuel tank 16
of an aircraft occurs in the United States. 17
‘‘(4) S
ALE.—For purposes of paragraph (1), 18
the qualified aviation gasoline is sold in a manner 19
described in this paragraph if such gasoline is sold 20
by the taxpayer to an unrelated person— 21
‘‘(A) for use by such person in a trade or 22
business, or 23
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‘‘(B) who sells such fuel at retail to an-1
other person and places such fuel in the fuel 2
tank of such other person. 3
‘‘(b) R
EGISTRATION OFQUALIFIEDAVIATIONGASO-4
LINEPRODUCERS.—No credit shall be allowed under this 5
section with respect to any aviation gasoline unless the 6
producer of such fuel— 7
‘‘(1) is registered with the Secretary under sec-8
tion 4101, and 9
‘‘(2) provides certification (in such form or 10
manner as the Secretary shall prescribe after con-11
sultation with the Secretary of Transportation) dem-12
onstrating that such gasoline is qualified aviation 13
gasoline. 14
‘‘(c) R
EGULATIONS AND GUIDANCE.—Not later than 15
180 days after the date of the enactment of this section, 16
the Secretary shall, after consultation with the Secretary 17
of Transportation, prescribe such regulations and guid-18
ance as are necessary to carry out the purposes of this 19
section. 20
‘‘(d) T
ERMINATION.—This section shall not apply to 21
any sale after December 31, 2030.’’. 22
(b) C
REDITMADEPART OFGENERALBUSINESS 23
C
REDIT.—Section 38(b) of such Code is amended by strik-24
ing ‘‘plus’’ at the end of paragraph (40), by striking the 25
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period at the end of paragraph (41) and inserting ‘‘, plus’’, 1
and by inserting after paragraph (41) the following new 2
paragraph: 3
‘‘(42) the aviation gasoline production credit 4
determined under section 45BB.’’. 5
(c) C
ERTIFICATION OF PRODUCERS.—Section 6
4101(a)(1) of such Code is amended by striking ‘‘and 7
every person producing second generation biofuel (as de-8
fined in section 40(b)(6)(E))’’ and inserting ‘‘every person 9
producing second generation biofuel (as defined in section 10
40(b)(6)(E)), and every person producing qualified avia-11
tion gasoline (as defined in section 45BB(a)(4))’’. 12
(d) Q
UALIFIEDAVIATIONGASOLINETAXED ASAVIA-13
TIONGASOLINE.—Section 4081(a)(2)(A)(ii) of such Code 14
is amended by inserting ‘‘(including qualified aviation gas-15
oline as defined in section 45BB(a)(4))’’ after ‘‘aviation 16
gasoline’’. 17
(e) C
LERICALAMENDMENT.—The table of sections 18
for subpart D of subchapter A of chapter 1 of such Code 19
is amended by inserting after the item relating to section 20
45AA the following new item: 21
‘‘Sec. 45BB. Aviation gasoline credit.’’.
(f) EFFECTIVEDATE.—The amendments made by 22
this section shall apply to fuel sold or used after December 23
31, 2025. 24
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SEC. 3. GAO STUDY. 1
(a) S
TUDY.—The Comptroller General of the United 2
States shall carry out a study relating to the price of un-3
leaded aviation gas, including— 4
(1) the price differential of leaded aviation gas 5
at the consumer point of sale as compared with un-6
leaded aviation gas, including unleaded aviation gas 7
at different octane levels, 8
(2) the major drivers of the price differential 9
between leaded and unleaded gas, including research 10
and development, refining, transportation and deliv-11
ery and storage, 12
(3) whether the aviation gasoline credit under 13
section 45BB of the Internal Revenue Code of 1986 14
(as added by section 1) results in cost savings that 15
are passed along to the end-user consumer, 16
(4) recommendations, if any, for changes to 17
such credit to ensure the highest amount of cost sav-18
ings is passed along to the end-user consumer, and 19
(5) the amount and percentage of unleaded 20
aviation gas in the overall aviation gas market and 21
future market projections for such amount and per-22
centage. 23
(b) R
EPORT.—Not later than one year after the date 24
of the enactment of this Act, the Comptroller General of 25
the United States shall issue a report to Congress describ-26
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ing the findings and determinations made in carrying out 1
the study required under subsection (a). 2
Æ
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