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119-hr-311119th CongressWALLET

Restoring Fuel Market Freedom Act of 2025

Sponsored By: Representative Perry, Scott [R-PA-10]

Introduced

Summary

Ends federal tax credits for several low-carbon and alternative fuels. This bill would repeal the main federal tax incentives that subsidize alcohol fuels, biodiesel, sustainable aviation fuel, clean fuel production, and certain fuel mixture credits and then reorganize tax-code references to match those repeals.

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  • Fuel producers and blenders: Companies that make or blend alcohol fuels, biodiesel, sustainable aviation fuel, or other qualifying clean fuels would lose the specific tax credits that currently lower production costs. This change applies to fuels produced or sold after the bill’s enactment.
  • Airlines and aviation fuel suppliers: Producers of sustainable aviation fuel would no longer get the SAF credit, which could affect pricing or investment decisions in SAF development.
  • Tax administration and legal clarity: The bill would add transitional language and clean up cross-references so pre-repeal rules and definitions still apply in limited historical contexts and so the Internal Revenue Code reflects the removals cleanly.

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Bill Overview

Analyzed Economic Effects

1 provisions identified: 0 benefits, 1 costs, 0 mixed.

Remove fuel tax breaks for producers

If enacted, this bill would repeal several federal tax credits for fuels. Producers and blenders would lose credits for alcohol fuels, biodiesel, sustainable aviation fuel, clean fuel production, and some fuel mixtures. Small businesses that used a special refund under section 6427(e) would no longer get those payments for fuel sold or used after enactment. The bill would also treat the sustainable aviation fuel credit as taxable income. It would change the ethanol test and require EPA consultation using a 7,500,000,000-gallon threshold. These changes could raise costs for fuel producers and may push prices up for businesses and households.

Sponsors & CoSponsors

Sponsor

Perry, Scott [R-PA-10]

PA • R

Cosponsors

  • Rep. Ogles, Andrew [R-TN-5]

    TN • R

    Sponsored 1/9/2025

  • Rep. Burlison, Eric [R-MO-7]

    MO • R

    Sponsored 1/9/2025

Roll Call Votes

No roll call votes available for this bill.

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