I 
118TH CONGRESS 
1ST SESSION H. R. 4760 
To amend the Internal Revenue Code of 1986 to increase excise taxes on 
fuel used by private jets, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 19, 2023 
Ms. VELA´ZQUEZ (for herself and Mr. TAKANO) introduced the following bill; 
which was referred to the Committee on Ways and Means, and in addi-
tion to the Committees on Transportation and Infrastructure, and En-
ergy and Commerce, for a period to be subsequently determined by the 
Speaker, in each case for consideration of such provisions as fall within 
the jurisdiction of the committee concerned 
A BILL 
To amend the Internal Revenue Code of 1986 to increase 
excise taxes on fuel used by private jets, and for other 
purposes. 
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 ‘‘Fueling Alternative 
Transportation with a Carbon Aviation Tax Act of 2023’’. 
SEC. 2. INCREASE IN EXCISE TAX FOR FUEL USED BY PRI-
VATE JETS. 
(a) IN GENERAL.— 
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(1) RETAIL EXCISE TAX.—Section 4041(c) of 
the Internal Revenue Code of 1986 is amended by 
striking paragraph (3) and inserting the following: 
‘‘(3) RATE OF TAX.—The rate of tax imposed 
by this subsection shall be— 
‘‘(A) with respect to any sale or use for 
commercial aviation, 4.3 cents per gallon, and 
‘‘(B) with respect to any sale or use which 
is not described in subparagraph (A), an 
amount equal to the sum of— 
‘‘(i) 35.9 cents per gallon, plus 
‘‘(ii) $1.589 per gallon. 
‘‘(4) INFLATION ADJUSTMENT.—In the case of 
any calendar year beginning after 2024, the dollar 
amount in paragraph (3)(B)(ii) shall be increased by 
an amount equal to— 
‘‘(A) such dollar amount, multiplied by 
‘‘(B) the cost-of-living adjustment deter-
mined under section 1(f)(3) for the calendar 
year, determined by substituting ‘calendar year 
2023’ for ‘calendar year 2016’ in subparagraph 
(A)(ii) thereof.’’. 
(2) MANUFACTURERS
EXCISE
TAX.—Section 
4081(a)(2) of such Code is amended— 
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4081(a)(2)(C)(ii)’’ 
and 
inserting 
‘‘section 
4081(a)(2)(C)(ii)(I)’’. 
(C) Section 9503(c)(5)(B) of such Code is 
amended by striking ‘‘21.8 cents’’ and inserting 
‘‘35.9 cents’’. 
(b) REFUND OR CREDIT IN CASES OF REASONABLE 
CAUSE.—Section 6427 of the Internal Revenue Code of 
1986 is amended by inserting after subsection (e) the fol-
lowing new subsection: 
‘‘(f) EXCEPTION FROM INCREASE IN RATE OF TAX 
FOR CERTAIN LIQUIDS USED AS FUEL IN NON-COMMER-
CIAL AVIATION.— 
‘‘(1) RETAIL EXCISE TAX.—Except as provided 
in subsection (k), in the case of any fuel on the sale 
of which tax was imposed under section 4041(c) for 
which the rate of tax was determined under para-
graph (3)(B) of such section, if the Secretary deter-
mines (pursuant to such regulations as are pre-
scribed by the Secretary) that there is reasonable 
cause that the increase in the rate of tax pursuant 
to clause (ii) of such paragraph should not apply 
with respect to such fuel (such as in cases where the 
fuel was used in an aircraft which was engaged in 
scientific research, an evacuation from a natural dis-
aster, or assistance in a medical emergency), the 
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Secretary shall pay (without interest) to the ultimate 
purchaser of such fuel an amount equal to the in-
crease in the amount of the tax imposed on such 
fuel pursuant to such clause. 
‘‘(2) MANUFACTURERS EXCISE TAX.—Except as 
provided in subsection (k), in the case of any ker-
osene on which tax was imposed under section 4081 
for which the rate of tax was determined under sub-
section (a)(2)(C)(ii) of such section, if the Secretary 
determines (pursuant to such regulations as are pre-
scribed by the Secretary) that there is reasonable 
cause that the increase in the rate of tax pursuant 
to subclause (II) of such subsection should not apply 
with respect to such kerosene (such as in cases 
where the kerosene was used in an aircraft which 
was engaged in scientific research, an evacuation 
from a natural disaster, or assistance in a medical 
emergency), the Secretary shall pay (without inter-
est) to the ultimate purchaser of such kerosene an 
amount equal to the increase in the amount of the 
tax imposed on such kerosene pursuant to such sub-
clause. 
‘‘(3) TERMINATION.—This subsection shall not 
apply to any fuel sold or used after January 1, 
2026.’’. 
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(c) ELIMINATION OF EXEMPTION FROM AIR TRANS-
PORTATION EXCISE TAX.—Section 4261(f) of the Internal 
Revenue Code of 1986 is amended to read as follows: 
‘‘(f) EXEMPTION FOR CERTAIN USES.— 
‘‘(1) IN GENERAL.—No tax shall be imposed 
under subsection (a) or (b) on air transportation by 
helicopter or by fixed-wing aircraft for the purpose 
of the planting, cultivation, cutting, or transpor-
tation of, or caring for, trees. 
‘‘(2) 
REQUIREMENT.—Paragraph 
(1) 
shall 
apply only if the helicopter or fixed-wing aircraft 
does not take off from, or land at, a facility eligible 
for assistance under the Airport and Airway Devel-
opment Act of 1970, or otherwise use services pro-
vided pursuant to section 44509 or 44913(b) or sub-
chapter I of chapter 471 of title 49, United States 
Code, during such use.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on January 1, 2024. 
SEC. 3. FUNDING TO SUPPORT CLEAN COMMUNITIES 
TRUST FUND. 
(a) IN GENERAL.—Subchapter A of chapter 98 of the 
Internal Revenue Code of 1986 is amended by adding at 
the end the following new section: 
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‘‘SEC. 9512. FUNDING TO SUPPORT CLEAN COMMUNITIES 
TRUST FUND. 
‘‘(a) ESTABLISHMENT
AND
FUNDING.—There is 
hereby established in the Treasury of the United States 
a trust fund to be referred to as the ‘Funding to Support 
Clean Communities Trust Fund’, consisting of such 
amounts as may be appropriated or credited to such trust 
fund as provided for in this section and section 9602(b). 
‘‘(b) TRANSFERS TO TRUST FUND.—There are here-
by appropriated to the Funding to Support Clean Commu-
nities Trust Fund amounts equivalent to the taxes re-
ceived in the Treasury under— 
‘‘(1) section 4041(c) to the extent attributable 
to the rate specified in paragraph (3)(B)(ii) of such 
section, and 
‘‘(2) section 4081 with respect to kerosene to 
the extent attributable to the rate specified in sec-
tion 4081(a)(2)(C)(ii)(II). 
‘‘(c) EXPENDITURES FROM TRUST FUND.— 
‘‘(1) IN GENERAL.—Subject to paragraph (2), 
amounts in the Funding to Support Clean Commu-
nities Trust Fund shall be available, as provided by 
appropriation Acts, for making expenditures for 
grants and other activities— 
‘‘(A) authorized under subsections (a) 
through (c) of section 103 and section 105 of 
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the Clean Air Act (42 U.S.C. 7403(a)–(c), 
7405), including grants and other activities 
to— 
‘‘(i) deploy, integrate, support, and 
maintain fenceline air monitoring, screen-
ing air monitoring, national air toxics 
trend stations, and other air toxics and 
community monitoring, 
‘‘(ii) expand the national ambient air 
quality monitoring network with new 
multipollutant monitoring stations, 
‘‘(iii) replace, repair, operate, and 
maintain existing monitors, and 
‘‘(iv) deploy, integrate, and operate 
air quality sensors in low-income and dis-
advantaged communities, 
‘‘(B) to expand, connect, replace, repair, 
operate, and maintain public transit and pas-
senger rail infrastructure or systems that are 
located 20 miles or less from an airport, and 
‘‘(C) to improve public transportation, par-
ticularly in underserved communities, including 
costs associated with efforts to provide more 
safe, frequent, and reliable bus service. 
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‘‘(2) SET ASIDE FOR ENVIRONMENTAL JUSTICE 
COMMUNITIES.— 
‘‘(A) IN
GENERAL.—For any calendar 
year, not less than 50 percent of the amounts 
made available under paragraph (1) shall be 
designated for expenditures for grants and 
other activities within environmental justice 
communities. 
‘‘(B) PRIORITIZATION OF FUNDS FOR COM-
MUNITIES
DISPROPORTIONALLY
IMPACTED
BY 
AIR POLLUTION.—With respect to making ex-
penditures for grants and other activities de-
scribed in paragraph (1) to environmental jus-
tice communities, priority shall be given to com-
munities that are disproportionately impacted 
by air pollution (as determined by the Secretary 
in consultation with the Administrator of the 
Environmental Protection Agency). 
‘‘(d) ENVIRONMENTAL JUSTICE COMMUNITY.—For 
purposes of this section— 
‘‘(1) IN
GENERAL.—The term ‘environmental 
justice community’ means a community with signifi-
cant representation of communities of color, low-in-
come communities, or Tribal and Indigenous com-
munities, that experiences, or is at risk of experi-
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encing higher or more adverse human health or envi-
ronmental effects. 
‘‘(2) COMMUNITY OF COLOR.—For purposes of 
paragraph (1), the term ‘community of color’ means 
a geographically distinct area in which the popu-
lation of any of the following categories of individ-
uals is higher than the average population of that 
category for the State in which the community is lo-
cated: 
‘‘(A) Black. 
‘‘(B) African American. 
‘‘(C) Asian. 
‘‘(D) Pacific Islander. 
‘‘(E) Other non-White race. 
‘‘(F) Hispanic. 
‘‘(G) Latino. 
‘‘(H) Linguistically isolated. 
‘‘(I) Middle Eastern and North African. 
‘‘(3) TRIBAL AND INDIGENOUS COMMUNITY.— 
For purposes of paragraph (1), the term ‘Tribal and 
Indigenous community’ means a population of people 
who are members of— 
‘‘(A) a Federally recognized Indian Tribe, 
‘‘(B) a State-recognized Indian Tribe, 
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‘‘(C) an Alaska Native community or orga-
nization, 
‘‘(D) a Native Hawaiian community or or-
ganization, or 
‘‘(E) any other Indigenous community lo-
cated in a State. 
‘‘(4) LOW-INCOME COMMUNITY.—For purposes 
of paragraph (1), the term ‘low-income community’ 
means any census block group in which 30 percent 
or more of the population are individuals with an 
annual household income equal to, or less than, the 
greater of— 
‘‘(A) an amount equal to 80 percent of the 
median income of the area in which the house-
hold is located, as reported by the Department 
of Housing and Urban Development, and 
‘‘(B) 200 percent of the Federal poverty 
line. 
‘‘(5) POPULATION.—For purposes of para-
graphs (2), (3), and (4), the term ‘population’ 
means a census block group or series of geographi-
cally contiguous blocks representing certain common 
characteristics, such as race, ethnicity, national ori-
gin, income-level, health disparities, or other public 
health and socioeconomic attributes.’’. 
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(b) CONFORMING AMENDMENTS TO AIRPORT AND 
AIRWAY TRUST FUND.—Section 9502(b)(1) of the Inter-
nal Revenue Code of 1986 is amended— 
(1) in subparagraph (A), by inserting ‘‘to the 
extent attributable to the rates specified in subpara-
graphs (A) and (B)(i) of section 4041(c)(3),’’ after 
‘‘(relating to aviation fuels),’’, and 
(2) in subparagraph (D), by striking ‘‘rate 
specified in’’ and inserting ‘‘rates specified in clauses 
(i) and (ii)(I) of’’. 
(c) CLERICAL AMENDMENT.—The table of sections 
for subchapter A of chapter 98 of the Internal Revenue 
Code of 1986 is amended by adding at the end the fol-
lowing new item: 
‘‘Sec. 9512. Funding to Support Clean Communities Trust Fund.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on January 1, 2024. 
Æ 
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