The bill would raise excise taxes on fuel used for aviation that is not commercial aviation. The tax rate would be 35.9 cents plus $1.641 per gallon, or $2 per gallon, and the $1.641 portion would adjust for inflation after 2026. Commercial aviation fuel would remain taxed at 4.3 cents per gallon under the bill. The changes would take effect January 1, 2026.
The bill would direct revenue from the added tax to a new trust fund. Subject to congressional appropriations, the fund could support air quality monitoring and public transportation, including transit and passenger rail near airports. At least half of yearly funding would go to disadvantaged communities, with priority for communities heavily affected by air pollution.
People who buy or use fuel for non-commercial aviation could face the higher tax. The Treasury could refund the added tax in certain cases, such as scientific research, disaster evacuations, or medical emergencies, when the Secretary of the Treasury finds reasonable cause. This refund provision would end for fuel sold or used after January 1, 2028. The bill also limits a tax exemption for aircraft used for tree-related work to cases where the aircraft does not use certain airport facilities or services.
The bill sets a $2-per-gallon tax rate for non-commercial aviation fuel, including a $1.641-per-gallon amount that would adjust for inflation after 2026. No publicly available information gives an estimate of total tax revenue or the cost of funded activities. Grants and other activities would depend on appropriations.
No publicly available information.
No publicly available information.