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
This bill would temporarily cut the federal fuel excise tax when the national average gasoline price rises above $3.99 per gallon and would bar several oil and gas tax breaks during those high‑price months. It links a price trigger to both lower fuel taxes at the pump and tighter tax treatment for producers.
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Bill Overview
Analyzed Economic Effects
3 provisions identified: 2 benefits, 1 costs, 0 mixed.
Restore highway and tank cleanup funding
If enacted, the Treasury would transfer money from the general fund to make up for excise-tax receipts lost to the temporary gas tax reduction. Transfers would equal the amounts that would have been credited to the Highway Trust Fund and the Leaking Underground Storage Tank (LUST) Trust Fund. The transfers would be treated for certain statutory purposes as if they were taxes received under the gasoline excise tax. These rules would apply for taxable years beginning after December 31, 2025 and would keep those programs funded despite lower excise receipts.
Limits oil and gas tax breaks
If enacted, oil and gas producers would lose several tax benefits during any month the national average gasoline price is over $3.99 per gallon. Intangible drilling costs (IDCs) would not be deductible for costs incurred in those months. The enhanced oil recovery credit and the marginal well production credit would not apply to costs or production in those months. These rules would apply for taxable years beginning after December 31, 2025 and would raise taxable income and tax bills for affected producers in those months.
Temporary federal gas tax cut
If enacted, the federal excise tax on gasoline would be reduced in any month when the national average price of gasoline is over $3.99 per gallon. The tax would drop by 1 cent for each cent the price is above $3.99, but it could not go below zero. This rule would apply beginning for taxable years after December 31, 2025. Households would pay less federal fuel tax per gallon in those months.
Sponsors & CoSponsors
Sponsor
Boyle, Brendan F. [D-PA-2]
PA • D
Cosponsors
Carson
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
Keating
MA • D
Sponsored 5/12/2026
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov