Restoring Fuel Market Freedom Act of 2025

117 HR 311 IH: Restoring Fuel Market Freedom Act of 2025 U.S. House of Representatives 2025-01-09 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. I 119th CONGRESS 1st Session H. R. 311 IN THE HOUSE OF REPRESENTATIVES January 9, 2025 Mr. Perry (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. 1. Short title; references (a) Short title This Act may be cited as the Restoring Fuel Market Freedom Act of 2025 . (b) Amendment of 1986 Code Except as otherwise expressly provided, whenever in this Act an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Internal Revenue Code of 1986. 2. Repeal of Alcohol fuels credit (a) In general Subpart D of part IV of subchapter A of chapter 1 of subtitle A is amended by repealing section 40 (and by striking the item relating to such section in the table of sections for such subpart). (b) Conforming amendments (1) Section 25C(d)(3)(B) is amended by inserting , as in effect on the day before the date of the enactment of the Restoring Fuel Market Freedom Act of 2025 after section 40 . (2) Section 38(b) is amended by striking paragraph (3). (3) Section 40A is amended— (A) in subsection (d)(1),by striking 40 or in the matter following subparagraph (B), and (B) in subsection (f)(3), by striking may be determined under section 40 and inserting was allowable on the day before date of the enactment of the Restoring Fuel Market Freedom Act of 2025 under section 40 . (4) Section 87 is amended by striking paragraph (1). (5) Section 168(l)(2)(A) is amended by inserting as in effect on the day before the date of the enactment of the Restoring Fuel Market Freedom Act of 2025 after section 40(b)(6)(E) . (6) Section 196(c) is amended by striking paragraph (3). (7) Section 4101(a)(1) is amended by striking every person producing or importing sustainable aviation fuel (as defined in section 40B), and every person producing second generation biofuel (as defined in section 40(b)(6)(E)) and inserting and every person producing or importing sustainable aviation fuel (as defined in section 40B) . (8) Section 4104(a)(1) is amended by striking , 40, . (9) Section 6426 is amended— (A) in subsection (b)(2)(C), by striking described in section 40(h)(3)(B) and all that follows through 2007, and inserting , in consultation with the Administrator of the Environmental Protection Agency, that, with respect to any taxable year, that an amount less than 7,500,000,000 gallons of ethanol (including cellulosic ethanol) has been produced in or imported into the United States in all preceding calendar years beginning after 2007, , (B) in subsection (g), by inserting as in effect on the day before the date of the enactment of the Restoring Fuel Market Freedom Act of 2025 after section 40(c) , and (C) in subsection (h), by striking section 40, 40A, and inserting section 40A . (c) Effective date The amendments made by this section shall apply to fuels produced after the date of the enactment of this section. 3. Repeal of biodiesels fuel credit (a) In general Subpart D of part IV of subchapter A of chapter 1 of subtitle A is amended by repealing section 40A (and by striking the item relating to such section in the table of sections for such subpart). (b) Conforming amendments (1) Section 25C(d)(3)(A) is further amended by inserting , as in effect on the day before the date of the enactment of the Restoring Fuel Market Freedom Act of 2025 after section 40A . (2) Section 30C(C)(1)(B)(ii)(I) is amended by inserting (as in effect on the day before the date of the enactment of the Restoring Fuel Market Freedom Act of 2025 ) after section 40A(d)(1) . (3) Section 38(b) is further amended by striking paragraph (17). (4) Section 87 (as amended by section 2) is amended to read as follows: 87. Alcohol and biodiesel fuels credits Gross income includes the sustainable aviation fuel credit determined with respect to the taxpayer for the taxable year under section 40B(a). . (5) Section 196(c) is further amended by striking paragraph (11). (6) Section 4101(a)(1) is further amended by striking , every person producing or importing biodiesel (as defined in section 40A(d)(1)) . (7) Section 4104(a)(1) is further amended— (A) by striking sections and inserting section , and (B) by striking and 40A, . (8) Section 6426 is further amended— (A) in subsection (c)(5), by striking also used in section 40A shall have the meaning given such term by section 40A and inserting also used in section 40A (as in effect on the day before the date of the enactment of the Restoring Fuel Market Freedom Act of 2025 ) shall have the meaning given such term by such section (as in effect on such date) , and (B) in subsection (h), by striking 40A or . (9) Section 7704(d)(1)(E) is amended by inserting , as in effect on the day before the date of the enactment of the Restoring Fuel Market Freedom Act of 2025 after 40A(d)(1) . (c) Effective date The amendments made by this section shall apply to fuels sold or used after the date of the enactment of this section. 4. Repeal of sustainable aviation fuel credit (a) In general Subpart D of part IV of subchapter A of chapter 1 of subtitle A is amended by repealing section 40B (and by striking the item relating to such section in the table of sections for such subpart. (b) Conforming amendments (1) Section 38(b) is further amended by striking paragraph (35). (2) Part II of subchapter B of chapter 1 of subtitle A is amended by repealing section 87 (and by striking the item relating to such section in the table of sections for such part). (3) Section 56(a) is amended by striking paragraph (7). (4) Section 4101(a)(1) is further amended by striking , every person producing or importing sustainable aviation fuel (as defined in section 40B) . (5) Section 6426 is further amended— (A) by striking subsection (h), and (B) in subsection (k), by adding at the end the following new paragraph: (4) References to section 40B Each reference in this subsection to section 40B shall be treated as a reference to such section as such section was in effect on the day before the date of the enactment of the Restoring Fuel Market Freedom Act of 2025 . . (c) Effective date The amendments made by this section shall apply to fuel sold or used after the date of the enactment of this section. 5. Repeal of clean fuel production credit (a) In general Subpart Do f part IV of subchapter A of chapter 1 of subtitle A is amended by repealing section 45Z (and by striking the item relating to such section in the table of sections for such subpart). (b) Conforming amendments (1) Section 6417(b) is amended by striking paragraph (9). (2) Section 6418(f)(1)(A) is amended by striking clause (viii). (3) Section 13704 of Public Law 117–169 is amended by striking subsection (b). (c) Effective date The amendments made by this section shall apply to transportation fuels produced after the date of the enactment of this section. 6. Repeal of alcohol fuel, biodiesel, and alternative fuel mixtures credit (a) In general Subchapter B of chapter 65 of subtitle F is amended by repealing section 6426 (and by striking the item relating to such section in the table of sections for such subchapter). (b) Conforming amendments (1) Section 4101(a)(1) is further amended by striking or alcohol (as defined in section 6426(b)(4)(A)) . (2) Section 4104(a)(2) is further amended by striking , 6426, . (3) Section 6427 is further amended (4) Section 7704(d)(1)(E), as amended by section 4(b)(7), is further amended by inserting such sections were after , as . (5) Section 9503(b)(1) is amended by striking credits under section 6426 . (c) Clerical Amendment The table of sections for subchapter B of chapter 65 of subtitle F is amended by striking the item relating to section 6426. (d) Effective date The amendments made by this section shall apply to fuel used or sold after the date of the enactment of this section. 7. Repeal of expired provisions relating to payments for certain fuels not used for taxable purposes (a) In general Section 6427 is amended by striking subsection (e). (b) Conforming amendments (1) Section 40A(c) is amended by striking or 6427(e) . (2) Section 40B(g) is amended by striking or 6427(e) . (3) Section 4104(a)(2) is further amended by striking 4041(b)(2), 6426, or 6427(e) and inserting 4041(b)(2) or 6426 . (4) Section 6427(i) is amended by striking paragraph (3). (c) Effective date The amendments made by this section shall apply to fuel sold or used after the date of the enactment of this section.