[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2932 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 2932
To amend the Internal Revenue Code of 1986 to establish a tax credit
for the production of aviation gasoline that is free of tetra-ethyl-
lead.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 17, 2025
Mr. Garcia of California (for himself and Mr. Obernolte) 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 establish a tax credit
for the production of aviation gasoline that is free of tetra-ethyl-
lead.
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 ``Cutting Lead Exposure and Aviation
Relief Skies Act'' or the ``CLEAR Skies Act''.
SEC. 2. AVIATION GASOLINE PRODUCTION CREDIT.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by adding at the end
the following new section:
``SEC. 45BB. AVIATION GASOLINE PRODUCTION CREDIT.
``(a) Amount of Credit.--
``(1) In general.--For purposes of section 38, the aviation
gasoline production credit determined under this section for
the taxable year is an amount equal to the product of--
``(A) the number of gallons of qualified aviation
gasoline produced by the taxpayer and sold by the
taxpayer in the manner described in paragraph (5)
during the taxable year, multiplied by
``(B) the applicable amount with respect to such
gasoline.
``(2) Applicable amount.--The applicable amount under this
paragraph is equal to--
``(A) in the case of qualified aviation gasoline
sold during calendar year 2026, $1.25,
``(B) in the case of qualified aviation gasoline
sold during calendar year 2027, $1.20,
``(C) in the case of qualified aviation gasoline
sold during calendar year 2028, $1.15,
``(D) in the case of qualified aviation gasoline
sold during calendar year 2029, $1.10, and
``(E) in the case of qualified aviation gasoline
sold during calendar year 2030, $1.05.
``(3) Qualified aviation gasoline.--For purposes of this
section, the term `qualified aviation gasoline' means aviation
gasoline--
``(A) which is--
``(i) defined in section 436.101 of title
10, Code of Federal Regulations,
``(ii) free from tetra-ethyl-lead, and
``(iii) produced by the taxpayer in the
United States,
``(B) which meets the requirements of any aviation
fuel standards promulgated pursuant to section 44714 of
title 49, United States Code, and
``(C) the transfer of which to the fuel tank of an
aircraft occurs in the United States.
``(4) Sale.--For purposes of paragraph (1), the qualified
aviation gasoline is sold in a manner described in this
paragraph if such gasoline is sold by the taxpayer to an
unrelated person--
``(A) for use by such person in a trade or
business, or
``(B) who sells such fuel at retail to another
person and places such fuel in the fuel tank of such
other person.
``(b) Registration of Qualified Aviation Gasoline Producers.--No
credit shall be allowed under this section with respect to any aviation
gasoline unless the producer of such fuel--
``(1) is registered with the Secretary under section 4101,
and
``(2) provides certification (in such form or manner as the
Secretary shall prescribe after consultation with the Secretary
of Transportation) demonstrating that such gasoline is
qualified aviation gasoline.
``(c) Regulations and Guidance.--Not later than 180 days after the
date of the enactment of this section, the Secretary shall, after
consultation with the Secretary of Transportation, prescribe such
regulations and guidance as are necessary to carry out the purposes of
this section.
``(d) Termination.--This section shall not apply to any sale after
December 31, 2030.''.
(b) Credit Made Part of General Business Credit.--Section 38(b) of
such Code is amended by striking ``plus'' at the end of paragraph (40),
by striking the period at the end of paragraph (41) and inserting ``,
plus'', and by inserting after paragraph (41) the following new
paragraph:
``(42) the aviation gasoline production credit determined
under section 45BB.''.
(c) Certification of Producers.--Section 4101(a)(1) of such Code is
amended by striking ``and every person producing second generation
biofuel (as defined in section 40(b)(6)(E))'' and inserting ``every
person producing second generation biofuel (as defined in section
40(b)(6)(E)), and every person producing qualified aviation gasoline
(as defined in section 45BB(a)(4))''.
(d) Qualified Aviation Gasoline Taxed as Aviation Gasoline.--
Section 4081(a)(2)(A)(ii) of such Code is amended by inserting
``(including qualified aviation gasoline as defined in section
45BB(a)(4))'' after ``aviation gasoline''.
(e) Clerical Amendment.--The table of sections for subpart D of
subchapter A of chapter 1 of such Code is amended by inserting after
the item relating to section 45AA the following new item:
``Sec. 45BB. Aviation gasoline credit.''.
(f) Effective Date.--The amendments made by this section shall
apply to fuel sold or used after December 31, 2025.
SEC. 3. GAO STUDY.
(a) Study.--The Comptroller General of the United States shall
carry out a study relating to the price of unleaded aviation gas,
including--
(1) the price differential of leaded aviation gas at the
consumer point of sale as compared with unleaded aviation gas,
including unleaded aviation gas at different octane levels,
(2) the major drivers of the price differential between
leaded and unleaded gas, including research and development,
refining, transportation and delivery and storage,
(3) whether the aviation gasoline credit under section 45BB
of the Internal Revenue Code of 1986 (as added by section 1)
results in cost savings that are passed along to the end-user
consumer,
(4) recommendations, if any, for changes to such credit to
ensure the highest amount of cost savings is passed along to
the end-user consumer, and
(5) the amount and percentage of unleaded aviation gas in
the overall aviation gas market and future market projections
for such amount and percentage.
(b) Report.--Not later than one year after the date of the
enactment of this Act, the Comptroller General of the United States
shall issue a report to Congress describing the findings and
determinations made in carrying out the study required under subsection
(a).
<all>