I
119THCONGRESS
1
STSESSION H. R. 311
To amend the Internal Revenue Code of 1986 to repeal the alcohol fuels
credit, the biodiesels fuel credit, the sustainable aviation fuel credit,
the clean fuel production credit, the alcohol fuel, biodiesel, and alternative
fuel mixtures credit, and other related provisions.
IN THE HOUSE OF REPRESENTATIVES
JANUARY9, 2025
Mr. P
ERRY(for himself, Mr. OGLES, and Mr. BURLISON) 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 repeal
the alcohol fuels credit, the biodiesels fuel credit, the
sustainable aviation fuel credit, the clean fuel production
credit, the alcohol fuel, biodiesel, and alternative fuel
mixtures credit, and other related provisions.
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; REFERENCES. 3
(a) S
HORTTITLE.—This Act may be cited as the 4
‘‘Restoring Fuel Market Freedom Act of 2025’’. 5
(b) A
MENDMENT OF 1986 CODE.—Except as other-6
wise expressly provided, whenever in this Act an amend-7
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ment or repeal is expressed in terms of an amendment 1
to, or repeal of, a section or other provision, the reference 2
shall be considered to be made to a section or other provi-3
sion of the Internal Revenue Code of 1986. 4
SEC. 2. REPEAL OF ALCOHOL FUELS CREDIT. 5
(a) I
NGENERAL.—Subpart D of part IV of sub-6
chapter A of chapter 1 of subtitle A is amended by repeal-7
ing section 40 (and by striking the item relating to such 8
section in the table of sections for such subpart). 9
(b) C
ONFORMINGAMENDMENTS.— 10
(1) Section 25C(d)(3)(B) is amended by insert-11
ing ‘‘, as in effect on the day before the date of the 12
enactment of the Restoring Fuel Market Freedom 13
Act of 2025’’ after ‘‘section 40’’. 14
(2) Section 38(b) is amended by striking para-15
graph (3). 16
(3) Section 40A is amended— 17
(A) in subsection (d)(1),by striking ‘‘40 18
or’’ in the matter following subparagraph (B), 19
and 20
(B) in subsection (f)(3), by striking ‘‘may 21
be determined under section 40’’ and inserting 22
‘‘was allowable on the day before date of the en-23
actment of the Restoring Fuel Market Freedom 24
Act of 2025 under section 40’’. 25
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(4) Section 87 is amended by striking para-1
graph (1). 2
(5) Section 168(l)(2)(A) is amended by insert-3
ing ‘‘as in effect on the day before the date of the 4
enactment of the Restoring Fuel Market Freedom 5
Act of 2025’’ after ‘‘section 40(b)(6)(E)’’. 6
(6) Section 196(c) is amended by striking para-7
graph (3). 8
(7) Section 4101(a)(1) is amended by striking 9
‘‘every person producing or importing sustainable 10
aviation fuel (as defined in section 40B), and every 11
person producing second generation biofuel (as de-12
fined in section 40(b)(6)(E))’’ and inserting ‘‘and 13
every person producing or importing sustainable 14
aviation fuel (as defined in section 40B)’’. 15
(8) Section 4104(a)(1) is amended by striking 16
‘‘, 40,’’. 17
(9) Section 6426 is amended— 18
(A) in subsection (b)(2)(C), by striking 19
‘‘described in section 40(h)(3)(B)’’ and all that 20
follows through ‘‘2007,’’ and inserting ‘‘, in 21
consultation with the Administrator of the En-22
vironmental Protection Agency, that, with re-23
spect to any taxable year, that an amount less 24
than 7,500,000,000 gallons of ethanol (includ-25
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ing cellulosic ethanol) has been produced in or 1
imported into the United States in all preceding 2
calendar years beginning after 2007,’’, 3
(B) in subsection (g), by inserting ‘‘as in 4
effect on the day before the date of the enact-5
ment of the Restoring Fuel Market Freedom 6
Act of 2025’’ after ‘‘section 40(c)’’, and 7
(C) in subsection (h), by striking ‘‘section 8
40, 40A,’’ and inserting ‘‘section 40A’’. 9
(c) E
FFECTIVEDATE.—The amendments made by 10
this section shall apply to fuels produced after the date 11
of the enactment of this section. 12
SEC. 3. REPEAL OF BIODIESELS FUEL CREDIT. 13
(a) I
NGENERAL.—Subpart D of part IV of sub-14
chapter A of chapter 1 of subtitle A is amended by repeal-15
ing section 40A (and by striking the item relating to such 16
section in the table of sections for such subpart). 17
(b) C
ONFORMINGAMENDMENTS.— 18
(1) Section 25C(d)(3)(A) is further amended by 19
inserting ‘‘, as in effect on the day before the date 20
of the enactment of the Restoring Fuel Market 21
Freedom Act of 2025’’ after ‘‘section 40A’’. 22
(2) Section 30C(C)(1)(B)(ii)(I) is amended by 23
inserting ‘‘(as in effect on the day before the date 24
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of the enactment of the Restoring Fuel Market 1
Freedom Act of 2025)’’ after ‘‘section 40A(d)(1)’’. 2
(3) Section 38(b) is further amended by strik-3
ing paragraph (17). 4
(4) Section 87 (as amended by section 2) is 5
amended to read as follows: 6
‘‘SEC. 87. ALCOHOL AND BIODIESEL FUELS CREDITS. 7
‘‘Gross income includes the sustainable aviation fuel 8
credit determined with respect to the taxpayer for the tax-9
able year under section 40B(a).’’. 10
(5) Section 196(c) is further amended by strik-11
ing paragraph (11). 12
(6) Section 4101(a)(1) is further amended by 13
striking ‘‘, every person producing or importing bio-14
diesel (as defined in section 40A(d)(1))’’. 15
(7) Section 4104(a)(1) is further amended— 16
(A) by striking ‘‘sections’’ and inserting 17
‘‘section’’, and 18
(B) by striking ‘‘and 40A,’’. 19
(8) Section 6426 is further amended— 20
(A) in subsection (c)(5), by striking ‘‘also 21
used in section 40A shall have the meaning 22
given such term by section 40A’’ and inserting 23
‘‘also used in section 40A (as in effect on the 24
day before the date of the enactment of the Re-25
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storing Fuel Market Freedom Act of 2025) 1
shall have the meaning given such term by such 2
section (as in effect on such date)’’, and 3
(B) in subsection (h), by striking ‘‘40A 4
or’’. 5
(9) Section 7704(d)(1)(E) is amended by in-6
serting ‘‘, as in effect on the day before the date of 7
the enactment of the Restoring Fuel Market Free-8
dom Act of 2025’’ after ‘‘40A(d)(1)’’. 9
(c) E
FFECTIVEDATE.—The amendments made by 10
this section shall apply to fuels sold or used after the date 11
of the enactment of this section. 12
SEC. 4. REPEAL OF SUSTAINABLE AVIATION FUEL CREDIT. 13
(a) I
NGENERAL.—Subpart D of part IV of sub-14
chapter A of chapter 1 of subtitle A is amended by repeal-15
ing section 40B (and by striking the item relating to such 16
section in the table of sections for such subpart. 17
(b) C
ONFORMINGAMENDMENTS.— 18
(1) Section 38(b) is further amended by strik-19
ing paragraph (35). 20
(2) Part II of subchapter B of chapter 1 of sub-21
title A is amended by repealing section 87 (and by 22
striking the item relating to such section in the table 23
of sections for such part). 24
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(3) Section 56(a) is amended by striking para-1
graph (7). 2
(4) Section 4101(a)(1) is further amended by 3
striking ‘‘, every person producing or importing sus-4
tainable aviation fuel (as defined in section 40B)’’. 5
(5) Section 6426 is further amended— 6
(A) by striking subsection (h), and 7
(B) in subsection (k), by adding at the end 8
the following new paragraph: 9
‘‘(4) R
EFERENCES TO SECTION 40B .—Each ref-10
erence in this subsection to section 40B shall be 11
treated as a reference to such section as such section 12
was in effect on the day before the date of the enact-13
ment of the Restoring Fuel Market Freedom Act of 14
2025.’’. 15
(c) E
FFECTIVEDATE.—The amendments made by 16
this section shall apply to fuel sold or used after the date 17
of the enactment of this section. 18
SEC. 5. REPEAL OF CLEAN FUEL PRODUCTION CREDIT. 19
(a) I
NGENERAL.—Subpart Do f part IV of sub-20
chapter A of chapter 1 of subtitle A is amended by repeal-21
ing section 45Z (and by striking the item relating to such 22
section in the table of sections for such subpart). 23
(b) C
ONFORMINGAMENDMENTS.— 24
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(1) Section 6417(b) is amended by striking 1
paragraph (9). 2
(2) Section 6418(f)(1)(A) is amended by strik-3
ing clause (viii). 4
(3) Section 13704 of Public Law 117–169 is 5
amended by striking subsection (b). 6
(c) E
FFECTIVEDATE.—The amendments made by 7
this section shall apply to transportation fuels produced 8
after the date of the enactment of this section. 9
SEC. 6. REPEAL OF ALCOHOL FUEL, BIODIESEL, AND AL-10
TERNATIVE FUEL MIXTURES CREDIT. 11
(a) I
NGENERAL.—Subchapter B of chapter 65 of 12
subtitle F is amended by repealing section 6426 (and by 13
striking the item relating to such section in the table of 14
sections for such subchapter). 15
(b) C
ONFORMINGAMENDMENTS.— 16
(1) Section 4101(a)(1) is further amended by 17
striking ‘‘or alcohol (as defined in section 18
6426(b)(4)(A))’’. 19
(2) Section 4104(a)(2) is further amended by 20
striking ‘‘, 6426,’’. 21
(3) Section 6427 is further amended 22
(4) Section 7704(d)(1)(E), as amended by sec-23
tion 4(b)(7), is further amended by inserting ‘‘such 24
sections were’’ after ‘‘, as’’. 25
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(5) Section 9503(b)(1) is amended by striking 1
‘‘credits under section 6426’’. 2
(c) C
LERICALAMENDMENT.—The table of sections 3
for subchapter B of chapter 65 of subtitle F is amended 4
by striking the item relating to section 6426. 5
(d) E
FFECTIVEDATE.—The amendments made by 6
this section shall apply to fuel used or sold after the date 7
of the enactment of this section. 8
SEC. 7. REPEAL OF EXPIRED PROVISIONS RELATING TO 9
PAYMENTS FOR CERTAIN FUELS NOT USED 10
FOR TAXABLE PURPOSES. 11
(a) I
NGENERAL.—Section 6427 is amended by strik-12
ing subsection (e). 13
(b) C
ONFORMINGAMENDMENTS.— 14
(1) Section 40A(c) is amended by striking ‘‘or 15
6427(e)’’. 16
(2) Section 40B(g) is amended by striking ‘‘or 17
6427(e)’’. 18
(3) Section 4104(a)(2) is further amended by 19
striking ‘‘4041(b)(2), 6426, or 6427(e)’’ and insert-20
ing ‘‘4041(b)(2) or 6426’’. 21
(4) Section 6427(i) is amended by striking 22
paragraph (3). 23
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(c) EFFECTIVEDATE.—The amendments made by 1
this section shall apply to fuel sold or used after the date 2
of the enactment of this section. 3
Æ
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