I 
119TH CONGRESS 
1ST SESSION 
H. R. 311 
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 
JANUARY 9, 2025 
Mr. PERRY (for himself, Mr. OGLES, and Mr. BURLISON) 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 Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; REFERENCES. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Restoring Fuel Market Freedom Act of 2025’’. 
(b) AMENDMENT OF 1986 CODE.—Except as other-
wise expressly provided, whenever in this Act an amend-
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ment 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 provi-
sion of the Internal Revenue Code of 1986. 
SEC. 2. REPEAL OF ALCOHOL FUELS CREDIT. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of subtitle A is amended by repeal-
ing section 40 (and by striking the item relating to such 
section in the table of sections for such subpart). 
(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 2025’’ after ‘‘section 40’’. 
(2) Section 38(b) is amended by striking para-
graph (3). 
(3) Section 40A is amended— 
(A) in subsection (d)(1),by striking ‘‘40 
or’’ in the matter following subparagraph (B), 
and 
(B) in subsection (f)(3), by striking ‘‘may 
be determined under section 40’’ and inserting 
‘‘was allowable on the day before date of the en-
actment of the Restoring Fuel Market Freedom 
Act of 2025 under section 40’’. 
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(4) Section 87 is amended by striking para-
graph (1). 
(5) 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 2025’’ after ‘‘section 40(b)(6)(E)’’. 
(6) Section 196(c) is amended by striking para-
graph (3). 
(7) Section 4101(a)(1) is amended by striking 
‘‘every person producing or importing sustainable 
aviation fuel (as defined in section 40B), and every 
person producing second generation biofuel (as de-
fined in section 40(b)(6)(E))’’ and inserting ‘‘and 
every person producing or importing sustainable 
aviation fuel (as defined in section 40B)’’. 
(8) Section 4104(a)(1) is amended by striking 
‘‘, 40,’’. 
(9) Section 6426 is amended— 
(A) in subsection (b)(2)(C), by striking 
‘‘described in section 40(h)(3)(B)’’ and all that 
follows through ‘‘2007,’’ and inserting ‘‘, in 
consultation with the Administrator of the En-
vironmental Protection Agency, that, with re-
spect to any taxable year, that an amount less 
than 7,500,000,000 gallons of ethanol (includ-
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ing cellulosic ethanol) has been produced in or 
imported into the United States in all preceding 
calendar years beginning after 2007,’’, 
(B) in subsection (g), by inserting ‘‘as in 
effect on the day before the date of the enact-
ment of the Restoring Fuel Market Freedom 
Act of 2025’’ after ‘‘section 40(c)’’, and 
(C) in subsection (h), by striking ‘‘section 
40, 40A,’’ and inserting ‘‘section 40A’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to fuels produced after the date 
of the enactment of this section. 
SEC. 3. REPEAL OF BIODIESELS FUEL CREDIT. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of subtitle A is amended by repeal-
ing section 40A (and by striking the item relating to such 
section in the table of sections for such subpart). 
(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 2025’’ after ‘‘section 40A’’. 
(2) Section 30C(C)(1)(B)(ii)(I) is amended by 
inserting ‘‘(as in effect on the day before the date 
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of the enactment of the Restoring Fuel Market 
Freedom Act of 2025)’’ after ‘‘section 40A(d)(1)’’. 
(3) Section 38(b) is further amended by strik-
ing paragraph (17). 
(4) Section 87 (as amended by section 2) is 
amended to read as follows: 
‘‘SEC. 87. ALCOHOL AND BIODIESEL FUELS CREDITS. 
‘‘Gross income includes the sustainable aviation fuel 
credit determined with respect to the taxpayer for the tax-
able year under section 40B(a).’’. 
(5) Section 196(c) is further amended by strik-
ing paragraph (11). 
(6) Section 4101(a)(1) is further amended by 
striking ‘‘, every person producing or importing bio-
diesel (as defined in section 40A(d)(1))’’. 
(7) Section 4104(a)(1) is further amended— 
(A) by striking ‘‘sections’’ and inserting 
‘‘section’’, and 
(B) by striking ‘‘and 40A,’’. 
(8) Section 6426 is further amended— 
(A) in subsection (c)(5), by striking ‘‘also 
used in section 40A shall have the meaning 
given such term by section 40A’’ and inserting 
‘‘also used in section 40A (as in effect on the 
day before the date of the enactment of the Re-
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storing Fuel Market Freedom Act of 2025) 
shall have the meaning given such term by such 
section (as in effect on such date)’’, and 
(B) in subsection (h), by striking ‘‘40A 
or’’. 
(9) 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 2025’’ after ‘‘40A(d)(1)’’. 
(c) 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. 4. REPEAL OF SUSTAINABLE AVIATION FUEL CREDIT. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of subtitle A is amended by repeal-
ing section 40B (and by striking the item relating to such 
section in the table of sections for such subpart. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 38(b) is further amended by strik-
ing paragraph (35). 
(2) Part II of subchapter B of chapter 1 of sub-
title A is amended by repealing section 87 (and by 
striking the item relating to such section in the table 
of sections for such part). 
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(3) Section 56(a) is amended by striking para-
graph (7). 
(4) Section 4101(a)(1) is further amended by 
striking ‘‘, every person producing or importing sus-
tainable aviation fuel (as defined in section 40B)’’. 
(5) Section 6426 is further amended— 
(A) by striking subsection (h), and 
(B) in subsection (k), by adding at the end 
the following new paragraph: 
‘‘(4) REFERENCES TO SECTION 40B.—Each ref-
erence in this subsection to section 40B shall be 
treated as a reference to such section as such section 
was in effect on the day before the date of the enact-
ment of the Restoring Fuel Market Freedom Act of 
2025.’’. 
(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. 
SEC. 5. REPEAL OF CLEAN FUEL PRODUCTION CREDIT. 
(a) IN GENERAL.—Subpart Do f part IV of sub-
chapter A of chapter 1 of subtitle A is amended by repeal-
ing section 45Z (and by striking the item relating to such 
section in the table of sections for such subpart). 
(b) CONFORMING AMENDMENTS.— 
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(1) Section 6417(b) is amended by striking 
paragraph (9). 
(2) Section 6418(f)(1)(A) is amended by strik-
ing clause (viii). 
(3) Section 13704 of Public Law 117–169 is 
amended by striking subsection (b). 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to transportation fuels produced 
after the date of the enactment of this section. 
SEC. 6. REPEAL OF ALCOHOL FUEL, BIODIESEL, AND AL-
TERNATIVE FUEL MIXTURES CREDIT. 
(a) IN GENERAL.—Subchapter B of chapter 65 of 
subtitle F is amended by repealing section 6426 (and by 
striking the item relating to such section in the table of 
sections for such subchapter). 
(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 6427 is further amended 
(4) Section 7704(d)(1)(E), as amended by sec-
tion 4(b)(7), is further amended by inserting ‘‘such 
sections were’’ after ‘‘, as’’. 
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(5) 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. 7. REPEAL OF EXPIRED PROVISIONS RELATING TO 
PAYMENTS FOR CERTAIN FUELS NOT USED 
FOR TAXABLE PURPOSES. 
(a) IN GENERAL.—Section 6427 is amended by strik-
ing subsection (e). 
(b) CONFORMING AMENDMENTS.— 
(1) Section 40A(c) is amended by striking ‘‘or 
6427(e)’’. 
(2) Section 40B(g) is amended by striking ‘‘or 
6427(e)’’. 
(3) Section 4104(a)(2) is further amended by 
striking ‘‘4041(b)(2), 6426, or 6427(e)’’ and insert-
ing ‘‘4041(b)(2) or 6426’’. 
(4) Section 6427(i) is amended by striking 
paragraph (3). 
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