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119-hr-8600119th CongressWALLET

To amend the Internal Revenue Code of 1986 to temporarily suspend certain fuel excise taxes for fuel separated during periods in which the national average price of gasoline exceeds $3.99 per gallon, and to prohibit certain credits or deductions for oil and gas companies during such periods.

Sponsored By: Representative Boyle, Brendan F. [D-PA-2]

Introduced

Summary

Temporarily reduces the federal fuel excise tax when the national average price of gasoline tops $3.99 per gallon. It ties the tax cut to a simple formula that lowers the tax by 1 cent for each cent the price is above $3.99, with the reduction not falling below zero.

Show full summary
  • Drivers and households: When the national average gasoline price exceeds $3.99 per gallon the federal fuel excise tax is reduced by 1 cent per cent above $3.99 for fuel removed, entered, or sold during those months.
  • Highway and cleanup programs: The Treasury must transfer from the general fund to the Highway Trust Fund and the Leaking Underground Storage Tank Trust Fund amounts equal to the tax reduction to replace the lost receipts.
  • Oil and gas companies: The bill bars certain tax benefits during those high-price months. It disallows treatment of intangible drilling costs under section 263(c), prohibits the Enhanced Oil Recovery Credit for costs in those months, and excludes production during those months from the Marginal Well Credit. These tax changes apply to taxable years beginning after December 31, 2025.

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Bill Overview

Analyzed Economic Effects

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

Temporary federal gas tax cut

If enacted, the bill would cut the federal excise tax on gasoline in any month the national average price is above $3.99 per gallon. The cut would equal 1 cent for each cent the price is above $3.99, and it could not reduce the tax below zero. The Treasury would transfer money from the general fund into the Highway Trust Fund and the Leaking Underground Storage Tank (LUST) Trust Fund to match the lost excise-tax credits. The transfers would be treated for trust-fund accounting as if they were fuel tax receipts. These changes would apply for tax years starting after December 31, 2025.

Limits oil and gas tax breaks

If enacted, the bill would stop several tax preferences for oil and gas producers during any month the national average gasoline price is over $3.99 per gallon. It would disallow the enhanced oil recovery credit for costs paid or incurred in those months. It would prevent the special intangible drilling cost treatment for costs incurred in those months. It would also exclude production in those months from the marginal well production credit. These rules would apply for tax years starting after December 31, 2025.

Sponsors & CoSponsors

Sponsor

Boyle, Brendan F. [D-PA-2]

PA • D

Cosponsors

  • Rep. Soto, Darren [D-FL-9]

    FL • D

    Sponsored 10/1/2026

  • Rep. Keating, William R. [D-MA-9]

    MA • D

    Sponsored 5/12/2026

  • Rep. Carson, André [D-IN-7]

    IN • D

    Sponsored 5/12/2026

  • Rep. Carbajal, Salud O. [D-CA-24]

    CA • D

    Sponsored 5/12/2026

  • Rep. Landsman, Greg [D-OH-1]

    OH • D

    Sponsored 5/12/2026

  • Rep. Huffman, Jared [D-CA-2]

    CA • D

    Sponsored 5/20/2026

  • Rep. Larson, John B. [D-CT-1]

    CT • D

    Sponsored 6/4/2026

  • Rep. Tokuda, Jill N. [D-HI-2]

    HI • D

    Sponsored 6/10/2026

  • Rep. Whitesides, George [D-CA-27]

    CA • D

    Sponsored 7/9/2026

Roll Call Votes

No roll call votes available for this bill.

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