I 
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) intro-
duced 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 Representa-
tives 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’’. 
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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 provi-
sion, 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(a) IN GENERAL.—Section 40 is repealed.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 insert-
ing ‘‘, 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 para-
graph (3). 
(3) Section 168(l)(2)(A) is amended by insert-
ing ‘‘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 para-
graph (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))’’. 
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(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 strik-
ing paragraph (17). 
(4) Section 196(c) is further amended by strik-
ing paragraph (11). 
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(5) Section 4101(a)(1) is further amended by 
striking ‘‘, every person producing or importing bio-
diesel (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 in-
serting ‘‘, as in effect on the day before the date of 
the enactment of the Restoring Fuel Market Free-
dom 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 strik-
ing paragraph (35). 
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