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119-hr-10607119th CongressWALLET

American Fuel Affordability Act

Sponsored By: Representative Steube, W. Gregory [R-FL-17]

Introduced

Summary

Repeal of the federal diesel excise tax paired with new tax credits would aim to lower diesel costs and drive U.S. refinery construction and fuel output.

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  • Families and drivers: Diesel sold, used, removed, or entered after enactment would no longer carry the federal diesel excise tax, which could lower fuel costs for households and freight users.
  • Refinery investors and workers: Creates a 35 percent refinery construction investment credit for qualified new refineries that begin construction after enactment and are placed in service before January 1, 2037. It also adds a 5-cent-per-gallon refinery production credit for gasoline and diesel from newly constructed refineries and makes the special depreciation allowance for related production property permanent.
  • Highway and cleanup funding: Requires the Treasury to transfer amounts equal to the lost diesel excise receipts to the Highway Trust Fund and the Leaking Underground Storage Tank Trust Fund and to treat those transfers as taxes for financing rules.

*The bill would require transfers from the Treasury general fund to cover lost diesel excise receipts, shifting federal receipts to dedicated transportation and cleanup trust funds.*

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 2 benefits, 0 costs, 0 mixed.

Repeal diesel tax, replace highway money

This bill would repeal the federal excise tax on diesel for diesel sold, used, removed, or entered after enactment. To replace lost receipts, the Treasury would transfer from the general fund to the Highway Trust Fund and the Leaking Underground Storage Tank (LUST) Trust Fund amounts equal to the reduction caused by the repeal. The transfers would be treated for Trust Fund financing rules as if they were taxes received under the existing fuel tax rules.

Big tax breaks for new U.S. refineries

If enacted, owners and investors in new U.S. refineries would get large tax breaks. The bill would create a 35% refinery construction credit for qualified refinery property placed in service after enactment. It would also create a production credit of $0.05 per gallon for gasoline or diesel made and sold from newly constructed qualified refineries placed in service within 10 years. The bill would make bonus depreciation (the special allowance) permanent for property integral to new qualified refineries when construction begins after enactment.

Sponsors & CoSponsors

Sponsor

Steube, W. Gregory [R-FL-17]

FL • R

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

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