This bill would temporarily set the federal excise tax on gasoline to zero for gasoline removed, entered, or sold on or after the date the bill is enacted and before January 1, 2027. It also specifies that the Leaking Underground Storage Tank (LUST) financing rate would not apply to that gasoline.
The Secretary of the Treasury must transfer amounts from the general fund to the Highway Trust Fund and the Leaking Underground Storage Tank Trust Fund equal to the reduction in amounts that would otherwise have been credited to those funds because of the tax change. The bill includes coordination rules for how those transferred amounts should be treated for tax accounting purposes.
The bill states it is Congress's policy that consumers should immediately receive the benefit of the tax reduction and that transportation fuel producers and dealers should reduce prices to reflect the change. The Treasury may use applicable authorities to try to ensure consumers receive the benefit.
If this bill becomes law, the specific federal excise tax referenced (section 4081(a)(2)(A)(i) of the Internal Revenue Code) would be zero for covered gasoline sales through December 31, 2026. The LUST financing rate would not apply to that gasoline. The Treasury would be directed to replace the lost receipts to the Highway Trust Fund and the Leaking Underground Storage Tank Trust Fund from the general fund. The bill expresses Congress's expectation that fuel sellers lower prices and gives Treasury authority to seek enforcement.
The bill requires transfers from the general fund to the Highway Trust Fund and the Leaking Underground Storage Tank Trust Fund equal to the reduction in amounts credited to each fund because of the tax suspension. No dollar amounts or official cost estimates are included in the bill text or metadata. No publicly available information.
The bill's text states that consumers should immediately receive the benefit of the tax reduction and that fuel producers and dealers should lower prices to reflect the change. Sponsors introduced the bill to provide a gasoline tax holiday for 2026.
No publicly available information.