II 

117TH CONGRESS 

1ST SESSION S. 2877 

To amend the Internal Revenue Code of 1986 to allow for payments to 

certain individuals who dye fuel, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

SEPTEMBER 28, 2021 

Ms. BALDWIN (for herself and Mr. JOHNSON) 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 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. PAYMENT TO CERTAIN INDIVIDUALS WHO DYE 

4 FUEL. 

5 (a) IN GENERAL.—Subchapter B of chapter 65 of the 

6 Internal Revenue Code of 1986 is amended by adding at 

7 the end the following new section: 

8 ‘‘SEC. 6433. DYED FUEL. 

9 ‘‘(a) IN GENERAL.—If a person establishes to the 

10 satisfaction of the Secretary that such person meets the 


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1 requirements of subsection (b) with respect to diesel fuel 

2 or kerosene, then the Secretary shall pay to such person 

3 an amount (without interest) equal to the tax described 

4 in subsection (b)(2)(A) with respect to such diesel fuel or 

5 kerosene. 

6 ‘‘(b) REQUIREMENTS.— 

7 ‘‘(1) IN GENERAL.—A person meets the re8 quirements of this subsection with respect to diesel 

9 fuel or kerosene if such person removes from a ter10 minal eligible indelibly dyed diesel fuel or kerosene. 

11 ‘‘(2) ELIGIBLE INDELIBLY DYED DIESEL FUEL

12 OR KEROSENE DEFINED.—The term ‘eligible indeli13 bly dyed diesel fuel or kerosene’ means diesel fuel or 

14 kerosene— 

15 ‘‘(A) with respect to which a tax under sec16 tion 4081 was previously paid (and not credited 

17 or refunded), and 

18 ‘‘(B) which is exempt from taxation under 

19 section 4082(a). 

20 ‘‘(c) CROSS REFERENCE.—For civil penalty for ex21 cessive claims under this section, see section 6675.’’. 

22 (b) CONFORMING AMENDMENTS.— 

23 (1) Section 6206 of the Internal Revenue Code 

24 of 1986 is amended— 


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1 (A) by striking ‘‘or 6427’’ each place it ap2 pears and inserting ‘‘6427, or 6433’’; and 

3 (B) by striking ‘‘6420 and 6421’’ and in4 serting ‘‘6420, 6421, and 6433’’. 

5 (2) Section 6430 of such Code is amended— 

6 (A) by striking ‘‘or’’ at the end of para7 graph (2), by striking the period at the end of 

8 paragraph (3) and inserting ‘‘, or’’, and by add9 ing at the end the following new paragraph: 

10 ‘‘(4) which are removed as eligible indelibly 

11 dyed diesel fuel or kerosene under section 6433.’’. 

12 (3) Section 6675 of such Code is amended— 

13 (A) in subsection (a), by striking ‘‘or 6427 

14 (relating to fuels not used for taxable pur15 poses)’’ and inserting ‘‘6427 (relating to fuels 

16 not used for taxable purposes), or 6433 (relat17 ing to eligible indelibly dyed fuel)’’; and 

18 (B) in subsection (b)(1), by striking 

19 ‘‘6421, or 6427,’’ and inserting ‘‘6421, 6427, 

20 or 6433,’’. 

21 (4) The table of sections for subchapter B of 

22 chapter 65 of such Code is amended by adding at 

23 the end the following new item: 

‘‘Sec. 6433. Dyed fuel.’’. 

24 (c) EFFECTIVE DATE.—The amendments made by 

25 this section shall apply to eligible indelibly dyed diesel fuel 


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1 or kerosene removed on or after the date that is 180 days 

2 after the date of the enactment of this section. 

Æ 


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