II
119THCONGRESS
1
STSESSION S. 1111
To amend the Internal Revenue Code of 1986 to allow for payments to
certain individuals who dye fuel, and for other purposes.
IN THE SENATE OF THE UNITED STATES
MARCH25, 2025
Mr. J
OHNSON(for himself and Ms. BALDWIN) introduced the following bill;
which was read twice and referred to the Committee on Finance
A BILL
To amend the Internal Revenue Code of 1986 to allow for
payments to certain individuals who dye fuel, and for
other purposes.
Be it enacted by the Senate and House of Representa-1
tives of the United States of America in Congress assembled, 2
SECTION 1. PAYMENT TO CERTAIN INDIVIDUALS WHO DYE 3
FUEL. 4
(a) I
NGENERAL.—Subchapter B of chapter 65 of the 5
Internal Revenue Code of 1986 is amended by adding at 6
the end the following new section: 7
‘‘SEC. 6434. DYED FUEL. 8
‘‘(a) I
NGENERAL.—If a person establishes to the 9
satisfaction of the Secretary that such person meets the 10
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requirements of subsection (b) with respect to diesel fuel 1
or kerosene, then the Secretary shall pay to such person 2
an amount (without interest) equal to the tax described 3
in subsection (b)(2)(A) with respect to such diesel fuel or 4
kerosene. 5
‘‘(b) R
EQUIREMENTS.— 6
‘‘(1) I
N GENERAL.—A person meets the re-7
quirements of this subsection with respect to diesel 8
fuel or kerosene if such person removes from a ter-9
minal eligible indelibly dyed diesel fuel or kerosene. 10
‘‘(2) E
LIGIBLE INDELIBLY DYED DIESEL FUEL 11
OR KEROSENE DEFINED .—The term ‘eligible indeli-12
bly dyed diesel fuel or kerosene’ means diesel fuel or 13
kerosene— 14
‘‘(A) with respect to which a tax under sec-15
tion 4081 was previously paid (and not credited 16
or refunded), and 17
‘‘(B) which is exempt from taxation under 18
section 4082(a). 19
‘‘(c) C
ROSSREFERENCE.—For civil penalty for ex-20
cessive claims under this section, see section 6675.’’. 21
(b) C
ONFORMINGAMENDMENTS.— 22
(1) Section 6206 of the Internal Revenue Code 23
of 1986 is amended— 24
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(A) by striking ‘‘or 6427’’ each place it ap-1
pears and inserting ‘‘6427, or 6434’’; and 2
(B) by striking ‘‘6420 and 6421’’ and in-3
serting ‘‘6420, 6421, and 6434’’. 4
(2) Section 6430 of such Code is amended— 5
(A) by striking ‘‘or’’ at the end of para-6
graph (2), by striking the period at the end of 7
paragraph (3) and inserting ‘‘, or’’, and by add-8
ing at the end the following new paragraph: 9
‘‘(4) which are removed as eligible indelibly 10
dyed diesel fuel or kerosene under section 6434.’’. 11
(3) Section 6675 of such Code is amended— 12
(A) in subsection (a), by striking ‘‘or 6427 13
(relating to fuels not used for taxable pur-14
poses)’’ and inserting ‘‘6427 (relating to fuels 15
not used for taxable purposes), or 6434 (relat-16
ing to eligible indelibly dyed fuel)’’; and 17
(B) in subsection (b)(1), by striking 18
‘‘6421, or 6427,’’ and inserting ‘‘6421, 6427, 19
or 6434,’’. 20
(4) The table of sections for subchapter B of 21
chapter 65 of such Code is amended by adding at 22
the end the following new item: 23
‘‘Sec. 6434. Dyed fuel.’’.
(c) EFFECTIVEDATE.—The amendments made by 24
this section shall apply to eligible indelibly dyed diesel fuel 25
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or kerosene removed on or after the date that is 180 days 1
after the date of the enactment of this section. 2
Æ
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