Us Congress 2025-2026 Regular Session

Us Congress House Bill HB311 Compare Versions

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Old	New	Differences
1	1	I
2	2	119THCONGRESS
3	3	1
4	4	STSESSION H. R. 311
5	5	To amend the Internal Revenue Code of 1986 to repeal the alcohol fuels
6	6	credit, the biodiesels fuel credit, the sustainable aviation fuel credit,
7	7	the clean fuel production credit, the alcohol fuel, biodiesel, and alternative
8	8	fuel mixtures credit, and other related provisions.
9	9	IN THE HOUSE OF REPRESENTATIVES
10	10	JANUARY9, 2025
11	11	Mr. P
12	12	ERRY(for himself, Mr. OGLES, and Mr. BURLISON) introduced the
13	13	following bill; which was referred to the Committee on Ways and Means
14	14	A BILL
15	15	To amend the Internal Revenue Code of 1986 to repeal
16	16	the alcohol fuels credit, the biodiesels fuel credit, the
17	17	sustainable aviation fuel credit, the clean fuel production
18	18	credit, the alcohol fuel, biodiesel, and alternative fuel
19	19	mixtures credit, and other related provisions.
20	20	Be it enacted by the Senate and House of Representa-1
21	21	tives of the United States of America in Congress assembled, 2
22	22	SECTION 1. SHORT TITLE; REFERENCES. 3
23	23	(a) S
24	24	HORTTITLE.—This Act may be cited as the 4
25	25	‘‘Restoring Fuel Market Freedom Act of 2025’’. 5
26	26	(b) A
27	27	MENDMENT OF 1986 CODE.—Except as other-6
28	28	wise expressly provided, whenever in this Act an amend-7
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32	32	ment or repeal is expressed in terms of an amendment 1
33	33	to, or repeal of, a section or other provision, the reference 2
34	34	shall be considered to be made to a section or other provi-3
35	35	sion of the Internal Revenue Code of 1986. 4
36	36	SEC. 2. REPEAL OF ALCOHOL FUELS CREDIT. 5
37	37	(a) I
38	38	NGENERAL.—Subpart D of part IV of sub-6
39	39	chapter A of chapter 1 of subtitle A is amended by repeal-7
40	40	ing section 40 (and by striking the item relating to such 8
41	41	section in the table of sections for such subpart). 9
42	42	(b) C
43	43	ONFORMINGAMENDMENTS.— 10
44	44	(1) Section 25C(d)(3)(B) is amended by insert-11
45	45	ing ‘‘, as in effect on the day before the date of the 12
46	46	enactment of the Restoring Fuel Market Freedom 13
47	47	Act of 2025’’ after ‘‘section 40’’. 14
48	48	(2) Section 38(b) is amended by striking para-15
49	49	graph (3). 16
50	50	(3) Section 40A is amended— 17
51	51	(A) in subsection (d)(1),by striking ‘‘40 18
52	52	or’’ in the matter following subparagraph (B), 19
53	53	and 20
54	54	(B) in subsection (f)(3), by striking ‘‘may 21
55	55	be determined under section 40’’ and inserting 22
56	56	‘‘was allowable on the day before date of the en-23
57	57	actment of the Restoring Fuel Market Freedom 24
58	58	Act of 2025 under section 40’’. 25
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62	62	(4) Section 87 is amended by striking para-1
63	63	graph (1). 2
64	64	(5) Section 168(l)(2)(A) is amended by insert-3
65	65	ing ‘‘as in effect on the day before the date of the 4
66	66	enactment of the Restoring Fuel Market Freedom 5
67	67	Act of 2025’’ after ‘‘section 40(b)(6)(E)’’. 6
68	68	(6) Section 196(c) is amended by striking para-7
69	69	graph (3). 8
70	70	(7) Section 4101(a)(1) is amended by striking 9
71	71	‘‘every person producing or importing sustainable 10
72	72	aviation fuel (as defined in section 40B), and every 11
73	73	person producing second generation biofuel (as de-12
74	74	fined in section 40(b)(6)(E))’’ and inserting ‘‘and 13
75	75	every person producing or importing sustainable 14
76	76	aviation fuel (as defined in section 40B)’’. 15
77	77	(8) Section 4104(a)(1) is amended by striking 16
78	78	‘‘, 40,’’. 17
79	79	(9) Section 6426 is amended— 18
80	80	(A) in subsection (b)(2)(C), by striking 19
81	81	‘‘described in section 40(h)(3)(B)’’ and all that 20
82	82	follows through ‘‘2007,’’ and inserting ‘‘, in 21
83	83	consultation with the Administrator of the En-22
84	84	vironmental Protection Agency, that, with re-23
85	85	spect to any taxable year, that an amount less 24
86	86	than 7,500,000,000 gallons of ethanol (includ-25
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90	90	ing cellulosic ethanol) has been produced in or 1
91	91	imported into the United States in all preceding 2
92	92	calendar years beginning after 2007,’’, 3
93	93	(B) in subsection (g), by inserting ‘‘as in 4
94	94	effect on the day before the date of the enact-5
95	95	ment of the Restoring Fuel Market Freedom 6
96	96	Act of 2025’’ after ‘‘section 40(c)’’, and 7
97	97	(C) in subsection (h), by striking ‘‘section 8
98	98	40, 40A,’’ and inserting ‘‘section 40A’’. 9
99	99	(c) E
100	100	FFECTIVEDATE.—The amendments made by 10
101	101	this section shall apply to fuels produced after the date 11
102	102	of the enactment of this section. 12
103	103	SEC. 3. REPEAL OF BIODIESELS FUEL CREDIT. 13
104	104	(a) I
105	105	NGENERAL.—Subpart D of part IV of sub-14
106	106	chapter A of chapter 1 of subtitle A is amended by repeal-15
107	107	ing section 40A (and by striking the item relating to such 16
108	108	section in the table of sections for such subpart). 17
109	109	(b) C
110	110	ONFORMINGAMENDMENTS.— 18
111	111	(1) Section 25C(d)(3)(A) is further amended by 19
112	112	inserting ‘‘, as in effect on the day before the date 20
113	113	of the enactment of the Restoring Fuel Market 21
114	114	Freedom Act of 2025’’ after ‘‘section 40A’’. 22
115	115	(2) Section 30C(C)(1)(B)(ii)(I) is amended by 23
116	116	inserting ‘‘(as in effect on the day before the date 24
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120	120	of the enactment of the Restoring Fuel Market 1
121	121	Freedom Act of 2025)’’ after ‘‘section 40A(d)(1)’’. 2
122	122	(3) Section 38(b) is further amended by strik-3
123	123	ing paragraph (17). 4
124	124	(4) Section 87 (as amended by section 2) is 5
125	125	amended to read as follows: 6
126	126	‘‘SEC. 87. ALCOHOL AND BIODIESEL FUELS CREDITS. 7
127	127	‘‘Gross income includes the sustainable aviation fuel 8
128	128	credit determined with respect to the taxpayer for the tax-9
129	129	able year under section 40B(a).’’. 10
130	130	(5) Section 196(c) is further amended by strik-11
131	131	ing paragraph (11). 12
132	132	(6) Section 4101(a)(1) is further amended by 13
133	133	striking ‘‘, every person producing or importing bio-14
134	134	diesel (as defined in section 40A(d)(1))’’. 15
135	135	(7) Section 4104(a)(1) is further amended— 16
136	136	(A) by striking ‘‘sections’’ and inserting 17
137	137	‘‘section’’, and 18
138	138	(B) by striking ‘‘and 40A,’’. 19
139	139	(8) Section 6426 is further amended— 20
140	140	(A) in subsection (c)(5), by striking ‘‘also 21
141	141	used in section 40A shall have the meaning 22
142	142	given such term by section 40A’’ and inserting 23
143	143	‘‘also used in section 40A (as in effect on the 24
144	144	day before the date of the enactment of the Re-25
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148	148	storing Fuel Market Freedom Act of 2025) 1
149	149	shall have the meaning given such term by such 2
150	150	section (as in effect on such date)’’, and 3
151	151	(B) in subsection (h), by striking ‘‘40A 4
152	152	or’’. 5
153	153	(9) Section 7704(d)(1)(E) is amended by in-6
154	154	serting ‘‘, as in effect on the day before the date of 7
155	155	the enactment of the Restoring Fuel Market Free-8
156	156	dom Act of 2025’’ after ‘‘40A(d)(1)’’. 9
157	157	(c) E
158	158	FFECTIVEDATE.—The amendments made by 10
159	159	this section shall apply to fuels sold or used after the date 11
160	160	of the enactment of this section. 12
161	161	SEC. 4. REPEAL OF SUSTAINABLE AVIATION FUEL CREDIT. 13
162	162	(a) I
163	163	NGENERAL.—Subpart D of part IV of sub-14
164	164	chapter A of chapter 1 of subtitle A is amended by repeal-15
165	165	ing section 40B (and by striking the item relating to such 16
166	166	section in the table of sections for such subpart. 17
167	167	(b) C
168	168	ONFORMINGAMENDMENTS.— 18
169	169	(1) Section 38(b) is further amended by strik-19
170	170	ing paragraph (35). 20
171	171	(2) Part II of subchapter B of chapter 1 of sub-21
172	172	title A is amended by repealing section 87 (and by 22
173	173	striking the item relating to such section in the table 23
174	174	of sections for such part). 24
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178	178	(3) Section 56(a) is amended by striking para-1
179	179	graph (7). 2
180	180	(4) Section 4101(a)(1) is further amended by 3
181	181	striking ‘‘, every person producing or importing sus-4
182	182	tainable aviation fuel (as defined in section 40B)’’. 5
183	183	(5) Section 6426 is further amended— 6
184	184	(A) by striking subsection (h), and 7
185	185	(B) in subsection (k), by adding at the end 8
186	186	the following new paragraph: 9
187	187	‘‘(4) R
188	188	EFERENCES TO SECTION 40B .—Each ref-10
189	189	erence in this subsection to section 40B shall be 11
190	190	treated as a reference to such section as such section 12
191	191	was in effect on the day before the date of the enact-13
192	192	ment of the Restoring Fuel Market Freedom Act of 14
193	193	2025.’’. 15
194	194	(c) E
195	195	FFECTIVEDATE.—The amendments made by 16
196	196	this section shall apply to fuel sold or used after the date 17
197	197	of the enactment of this section. 18
198	198	SEC. 5. REPEAL OF CLEAN FUEL PRODUCTION CREDIT. 19
199	199	(a) I
200	200	NGENERAL.—Subpart Do f part IV of sub-20
201	201	chapter A of chapter 1 of subtitle A is amended by repeal-21
202	202	ing section 45Z (and by striking the item relating to such 22
203	203	section in the table of sections for such subpart). 23
204	204	(b) C
205	205	ONFORMINGAMENDMENTS.— 24
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209	209	(1) Section 6417(b) is amended by striking 1
210	210	paragraph (9). 2
211	211	(2) Section 6418(f)(1)(A) is amended by strik-3
212	212	ing clause (viii). 4
213	213	(3) Section 13704 of Public Law 117–169 is 5
214	214	amended by striking subsection (b). 6
215	215	(c) E
216	216	FFECTIVEDATE.—The amendments made by 7
217	217	this section shall apply to transportation fuels produced 8
218	218	after the date of the enactment of this section. 9
219	219	SEC. 6. REPEAL OF ALCOHOL FUEL, BIODIESEL, AND AL-10
220	220	TERNATIVE FUEL MIXTURES CREDIT. 11
221	221	(a) I
222	222	NGENERAL.—Subchapter B of chapter 65 of 12
223	223	subtitle F is amended by repealing section 6426 (and by 13
224	224	striking the item relating to such section in the table of 14
225	225	sections for such subchapter). 15
226	226	(b) C
227	227	ONFORMINGAMENDMENTS.— 16
228	228	(1) Section 4101(a)(1) is further amended by 17
229	229	striking ‘‘or alcohol (as defined in section 18
230	230	6426(b)(4)(A))’’. 19
231	231	(2) Section 4104(a)(2) is further amended by 20
232	232	striking ‘‘, 6426,’’. 21
233	233	(3) Section 6427 is further amended 22
234	234	(4) Section 7704(d)(1)(E), as amended by sec-23
235	235	tion 4(b)(7), is further amended by inserting ‘‘such 24
236	236	sections were’’ after ‘‘, as’’. 25
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240	240	(5) Section 9503(b)(1) is amended by striking 1
241	241	‘‘credits under section 6426’’. 2
242	242	(c) C
243	243	LERICALAMENDMENT.—The table of sections 3
244	244	for subchapter B of chapter 65 of subtitle F is amended 4
245	245	by striking the item relating to section 6426. 5
246	246	(d) E
247	247	FFECTIVEDATE.—The amendments made by 6
248	248	this section shall apply to fuel used or sold after the date 7
249	249	of the enactment of this section. 8
250	250	SEC. 7. REPEAL OF EXPIRED PROVISIONS RELATING TO 9
251	251	PAYMENTS FOR CERTAIN FUELS NOT USED 10
252	252	FOR TAXABLE PURPOSES. 11
253	253	(a) I
254	254	NGENERAL.—Section 6427 is amended by strik-12
255	255	ing subsection (e). 13
256	256	(b) C
257	257	ONFORMINGAMENDMENTS.— 14
258	258	(1) Section 40A(c) is amended by striking ‘‘or 15
259	259	6427(e)’’. 16
260	260	(2) Section 40B(g) is amended by striking ‘‘or 17
261	261	6427(e)’’. 18
262	262	(3) Section 4104(a)(2) is further amended by 19
263	263	striking ‘‘4041(b)(2), 6426, or 6427(e)’’ and insert-20
264	264	ing ‘‘4041(b)(2) or 6426’’. 21
265	265	(4) Section 6427(i) is amended by striking 22
266	266	paragraph (3). 23
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270	270	(c) EFFECTIVEDATE.—The amendments made by 1
271	271	this section shall apply to fuel sold or used after the date 2
272	272	of the enactment of this section. 3
273	273	Æ
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