H.R. 311

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.