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119-hr-10589119th CongressWALLET

Consumer Fuel Costs Relief Act

Sponsored By: Representative Pappas, Chris [D-NH-1]

Introduced

Summary

Temporary tax holiday for motor and aviation fuels. This bill would set the federal tax on taxable motor and aviation fuel to zero for fuel sold from enactment through Sept 30, 2027, and requires that the savings be passed to consumers.

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  • Producers, dealers, airlines, and other sellers would be required to reduce prices and pass savings to customers. Sellers that fail to lower prices can face monetary penalties at least equal to the tax reduction they should have passed on.
  • The Secretary of the Treasury must transfer funds from the general fund to the Highway Trust Fund and the Leaking Underground Storage Tank Trust Fund equal to the lost tax receipts. The transfers are coordinated so each trust fund is treated as receiving the credited tax amounts for accounting purposes.
  • Enforcement and market oversight are expanded. The Treasury can use its authorities to ensure pass-through, and the Federal Trade Commission and the Commodity Futures Trading Commission may monitor oil, diesel, and gasoline markets for price gouging and manipulation.

*This bill would shift lost fuel-tax receipts onto the general fund by requiring transfers to the Highway Trust Fund and the Leaking Underground Storage Tank Trust Fund.*

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 3 benefits, 0 costs, 0 mixed.

Replace lost highway and cleanup funds

If enacted, the bill would require the Treasury to transfer money from the general fund to the Highway Trust Fund and the Leaking Underground Storage Tank Trust Fund. Each transfer would equal the reduction in amounts that would otherwise have been credited to those Trust Funds because of the tax holiday. The bill would treat those transfers for accounting purposes as if the tax receipts had been received under the relevant Code sections.

Fuel price pass-through rules

If enacted, the bill would state that consumers should immediately get the benefit of the fuel tax reduction. Producers, fuel dealers, airlines, and other sellers would have to take steps to lower prices to reflect the tax cut. Dealers that fail to reduce prices would face monetary penalties at least equal to the tax amount owed. The Treasury would use its authorities to enforce this. The FTC and CFTC would monitor oil, diesel, and gasoline markets to prevent price gouging and manipulation.

Temporary federal fuel tax cut

If enacted, the bill would set the federal tax rate under IRC 4081(a)(2)(A) to zero for qualifying motor and aviation fuel removed, entered, or sold on or after the date of enactment and before October 1, 2027. The Leaking Underground Storage Tank financing rate under IRC 4081(a)(2)(B) would not apply to that fuel. The change would apply to "taxable fuel" as defined in Internal Revenue Code section 4083(a)(1). Whether you save at the pump would depend on how much producers and dealers lower retail prices.

Sponsors & CoSponsors

Sponsor

Pappas, Chris [D-NH-1]

NH • D

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

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