Restoring Fuel Market Freedom Act of 2023

Subjects: Taxation

Summary:  <p> <strong>Restoring Fuel Market Freedom Act of 2023 </strong></p> <p>This bill repeals various alternative fuels tax credits, including the tax credits for (1) alcohol used as fuel; (2) biodiesel and renewable diesel used as fuel; (3) sustainable aviation fuel; (4) clean fuel production; and (5) alcohol fuel, biodiesel, and alternative fuel mixtures. It also repeals the inclusion in gross income of alcohol and biodiesel fuels and payments for certain fuels not used for taxable purposes.</p>

<html><body><pre>[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2902 Introduced in House (IH)]

&lt;DOC&gt;






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    (a) In General.--Section 40 is repealed.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.
                                 &lt;all&gt;
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