[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2902 Introduced in House (IH)]
<DOC>
118th CONGRESS
1st Session
H. R. 2902
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
April 26, 2023
Mr. Perry (for himself, Mr. Gosar, Mr. Burlison, and Mr. Crane)
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 Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Restoring Fuel Market Freedom Act of
2023''.
SEC. 2. 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.
SEC. 3. REPEAL OF ALCOHOL FUELS CREDIT.
(a) In General.--Section 40 is repealed.
(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 2023'' after ``section
40''.
(2) Section 38(b) is amended by striking paragraph (3).
(3) 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 2023'' after ``section
40(b)(6)(E)''.
(4) Section 196(c) is amended by striking paragraph (3).
(5) Section 4101(a)(1) is amended by striking ``, and every
person producing second generation biofuel (as defined in
section 40(b)(6)(E))''.
(6) Section 4014(a)(1) is amended by striking ``, 40,''.
(c) Clerical Amendment.--The table of sections for subpart D of
part IV of subchapter A of chapter 1 of subtitle A is amended by
striking the item relating to section 40.
(d) Effective Date.--The amendments made by this section shall
apply to fuels produced after the date of the enactment of this
section.
SEC. 4. REPEAL OF BIODIESELS FUEL CREDIT.
(a) In General.--Section 40A is repealed.
(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 2023'' 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 2023)'' after
``section 40A(d)(1)''.
(3) Section 38(b) is further amended by striking paragraph
(17).
(4) Section 196(c) is further amended by striking paragraph
(11).
(5) Section 4101(a)(1) is further amended by striking ``,
every person producing or importing biodiesel (as defined in
section 40A(d)(1))''.
(6) Section 4104(a)(1) is further amended--
(A) by striking ``sections'' and inserting
``section'', and
(B) by striking ``and 40A,''.
(7) 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 2023'' after
``40A(d)(1)''.
(c) Clerical Amendment.--The table of sections for subpart D of
part IV of subchapter A of chapter 1 of subtitle A is amended by
striking the item relating to section 40A.
(d) Effective Date.--The amendments made by this section shall
apply to fuels sold or used after the date of the enactment of this
section.
SEC. 5. REPEAL OF SUSTAINABLE AVIATION FUEL CREDIT.
(a) In General.--Section 40B is repealed.
(b) Conforming Amendments.--
(1) Section 38(b) is further amended by striking paragraph
(35).
(2) Section 4101(a)(1) is further amended by striking ``,
every person producing or importing sustainable aviation fuel
(as defined in section 40B)''.
(c) Clerical Amendment.--The table of sections for subpart D of
part IV of subchapter A of chapter 1 of subtitle A is amended by
striking the item relating to section 40.
(d) Effective Date.--The amendments made by this section shall
apply to fuel sold or used after the date of the enactment of this
section.
SEC. 6. REPEAL OF SPECIFIC INCLUSION OF ALCOHOL AND BIODIESEL FUEL
CREDITS IN GROSS INCOME.
(a) In General.--Section 87 is repealed.
(b) Conforming Amendments.--Section 56(a) is amended by striking
paragraph (7).
(c) Clerical Amendment.--The table of sections for part II of
subchapter B of chapter 1 of subtitle A is amended by striking the item
relating to section 87.
(d) Effective Date.--The amendments made by this section shall
apply to fuel sold or used after the date of the enactment of this
section.
SEC. 7. REPEAL OF CLEAN FUEL PRODUCTION CREDIT.
(a) In General.--Section 45Z is repealed.
(b) Conforming Amendments.--Section 13704 of Public Law 117-169 is
amended by striking subsection (b).
(c) Clerical Amendment.--The table of sections for subpart D of
part IV of subchapter A of chapter 1 is amended by striking the item
relating to section 45Z.
(d) Effective Date.--The amendments made by this section shall
apply to transportation fuels produced after the date of the enactment
of this section.
SEC. 8. REPEAL OF ALCOHOL FUEL, BIODIESEL, AND ALTERNATIVE FUEL
MIXTURES CREDIT.
(a) In General.--Section 6426 is repealed.
(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 7704(d)(1)(E), as amended by section 4(b)(7),
is further amended by inserting ``such sections were'' after
``, as''.
(4) 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.
SEC. 9. REPEAL OF 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 34 is amended--
(A) in subsection (a), by inserting ``and'' after
the comma at the end of paragraph (1), by striking ``,
and'', and inserting a period at the end of paragraph
(2), and by striking paragraph (3), and
(B) in subsection (b)--
(i) by striking ``or 6427,'', and
(ii) by striking ``or 6427(k)''.
(2) Section 4007(b) of the CARES Act (15 U.S.C. 9046(b)) is
amended to read as follows:
``(b) Use of Kerosene in Commercial Aviation.--In the case of
kerosene used in commercial aviation (as defined in section 4083 of the
Internal Revenue Code of 1986) during the excise tax holiday period no
tax shall be imposed on such kerosene under--
``(1) section 4041(c) of the Internal Revenue Code of 1986,
or
``(2) section 4081 of such Code (other than at the rate
provided in subsection (a)(2)(B) thereof).''.
(3) Section 4041 is further amended by adding at the end
the following new subsection:
``(n) References to Section 6427.--Each reference to section 6427
in this section shall be applied as such section was in effect on the
date of the enactment of the Restoring Fuel Market Freedom Act of
2023.''.
(4) Section 4081(c) is amended by striking ``(or with
respect to which a credit or payment was allowed or made by
reason of section 6427)''.
(5) Section 4082(d)(2) is amended to read as follows:
``(2) Wholesale distributors.--To the extent provided in
regulations, subsection (a)(2) shall not apply to kerosene
received by a wholesale distributor of kerosene if such
distributor is registered under section 4101 with respect to
the tax imposed by section 4081 on kerosene.''.
(6) Section 4084 is amended by striking paragraph (3).
(7) Section 4041(a)(2) is further amended by striking ``or
6427(e)''.
(8) Section 6206 is amended--
(A) by striking ``section 6420, 6421, or 6427'' and
inserting ``section 6420 or 6421'',
(B) by striking ``or 4081 (with respect to payments
under section 6427)'',
(C) by striking ``section 6416(a)(4), 6420, 6421,
or 6427,'' and inserting ``section 6416(a)(4), 6420, or
6421,''.
(9) Section 6416(a)(4)(C) is amended by inserting ``(as
such section was in effect on the date of the enactment of the
Restoring Fuel Market Freedom Act of 2023)'' after ``section
6427(i)(4)''.
(10) Section 6421(d) is amended by striking paragraph (2).
(11) Section 6504(8) is amended by striking ``section 6420,
6421, or 6427'' and inserting ``section 6420 or 6421''.
(12) Section 6675(b)(1) is amended by striking ``section
6416(a)(4), 6420, 6421, or 6427,'' and inserting ``section
6416(a)(4), 6420, or 6421,''.
(13) Section 7210 is amended by striking ``6427(j)(2),''.
(14) Section 7603 is amended by striking ``6427(j)(2),''.
(15) Section 7604 is amended by striking ``6427(j)(2),''
each place such term appears.
(16) Section 7605 is amended--
(A) by striking ``, 6427(j)(2)'', and
(B) by striking ``section 6420(e)(2), 6421(g)(2),
or 6427(j)(2)'' and inserting ``section 6420(e)(2) or
6421(g)(2)''.
(17) Section 7609 is amended by striking ``6427(j)(2),''.
(18) Section 7610 is amended by striking ``6427(j)(2),''.
(19) Section 9502(d) is amended--
(A) in paragraph (2), by striking ``, 6421
(relating to amounts paid in respect of gasoline used
for certain nonhighway purposes), or 6427 (relating to
fuels not used for taxable purposes) (other than
subsection (l)(4) thereof)'' and inserting ``or 6421
(relating to amounts paid in respect of gasoline used
for certain nonhighway purposes)'', and
(B) in paragraph (3), by striking ``(other than
payments made by reason of paragraph (4) of section
6427(l))''.
(20) Section 9503(c) is amended by striking paragraph (5).
(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.
<all>