S. 1111

119 S1111 IS: To amend the Internal Revenue Code of 1986 to allow for payments to certain individuals who dye fuel, and for other purposes.
 U.S. Senate
 2025-03-25
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 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.
 II  119th CONGRESS  1st Session  S. 1111  IN THE SENATE OF THE UNITED STATES   March 25, 2025   Mr. Johnson  (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.
1.
Payment to certain individuals who dye fuel
(a)
In general
Subchapter B of  chapter 65  of the Internal Revenue Code of 1986 is amended by adding at the end the following new section:
6434.
Dyed fuel
(a)
In general
If a person establishes to the satisfaction of the Secretary that such person meets the requirements of subsection (b) with respect to diesel fuel or kerosene, then the Secretary shall pay to such person an amount (without interest) equal to the tax described in subsection (b)(2)(A) with respect to such diesel fuel or kerosene.
(b)
Requirements
(1)
In general
A person meets the requirements of this subsection with respect to diesel fuel or kerosene if such person removes from a terminal eligible indelibly dyed diesel fuel or kerosene.
(2)
Eligible indelibly dyed diesel fuel or kerosene defined
The term  eligible indelibly dyed diesel fuel or kerosene  means diesel fuel or kerosene—
(A)
with respect to which a tax under section 4081 was previously paid (and not credited or refunded), and
(B)
which is exempt from taxation under section 4082(a).
(c)
Cross reference
For civil penalty for excessive claims under this section, see section 6675.
 .
(b)
Conforming amendments
(1)
 Section 6206  of the Internal Revenue Code of 1986 is amended—
(A)
by striking  or 6427  each place it appears and inserting  6427, or 6434 ; and
(B)
by striking  6420 and 6421  and inserting  6420, 6421, and 6434 .
(2)
Section 6430 of such Code is amended—
(A)
by striking  or  at the end of paragraph (2), by striking the period at the end of paragraph (3) and inserting  , or , and by adding at the end the following new paragraph:
(4)
which are removed as eligible indelibly dyed diesel fuel or kerosene under section 6434.
 .
(3)
Section 6675 of such Code is amended—
(A)
in subsection (a), by striking  or 6427 (relating to fuels not used for taxable purposes)  and inserting  6427 (relating to fuels not used for taxable purposes), or 6434 (relating to eligible indelibly dyed fuel) ; and
(B)
in subsection (b)(1), by striking  6421, or 6427,  and inserting  6421, 6427, or 6434, .
(4)
The table of sections for subchapter B of chapter 65 of such Code is amended by adding at the end the following new item:
Sec. 6434. Dyed fuel.
  .
(c)
Effective date
The amendments made by this section shall apply to eligible indelibly dyed diesel fuel or kerosene removed on or after the date that is 180 days after the date of the enactment of this section.