MARKET CHOICE Act
Sponsored By: Representative Fitzpatrick
In Committee
Summary
Creates a U.S. carbon pricing system and directs most revenue to a new climate and infrastructure trust fund. The bill would tax fossil fuel combustion, industrial process emissions, and certain product uses and create the RISE Trust Fund to allocate revenues to highways, flood resilience, energy R&D, and targeted household and worker programs.
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- Low-income households: State grants from the RISE Trust Fund would target households at or below 150% of the poverty line and program participants such as SNAP recipients. Ten percent of RISE proceeds are set aside for these state grants.
- Displaced energy workers: A ten-year program would fund retraining, relocation, early retirement, health benefits, community block grants, and limited pension transfers for affected energy and nuclear workers.
- Businesses and trade: Producers and importers of fuels and certain manufacturers would face a CO2e tax starting at $40 per metric ton in 2027 and rising each year by 5% plus inflation. Imports could face border tax adjustments to match domestic carbon costs.
Bill Overview
Analyzed Economic Effects
12 provisions identified: 8 benefits, 1 costs, 3 mixed.
Temporary limits on EPA carbon rules
This bill would pause some EPA greenhouse gas rules where emissions are already taxed. The pause would last until January 1, 2039, unless emissions exceed set levels, which could end it earlier in 2031 or 2035. EPA could still regulate for health harms other than greenhouse gas effects, require monitoring and reporting, and regulate certain facilities. It would also bar EPA from requiring fuel makers to cut combustion emissions, except where another subsection requires it.
RISE fund for roads and climate projects
This bill would place 75% of carbon tax money into a new RISE Trust Fund. From 2027 to 2036, fixed shares would go to programs like the Highway Trust Fund (70%), State grants, coastal flooding mitigation (4%), weatherization (1.5%), and more, as Congress appropriates. It would define which carbon removal projects can get funding. It would also require Treasury to transfer set reforestation funds within 9 months.
Credit for state carbon payments
Businesses that pay a State greenhouse gas charge would get a federal credit under this bill. The credit would equal 100% of the State payment in 2027, then 80% in 2028, 60% in 2029, 40% in 2030, and 20% in 2031. No credit would be allowed after 2031.
New carbon tax on fuels and industry
This bill would tax greenhouse gas emissions from fossil fuels, certain products, and large industrial sources. The rate would be $40 per metric ton in 2027 and would rise each year by 5 percentage points plus inflation. If emissions beat set targets, the next year’s rate would also rise by $4 per ton. EPA would set how emissions are calculated and avoid double counting. Facilities emitting 25,000+ metric tons a year would be taxed, and failing to pay would bring a penalty of three times the amount owed.
Carbon border fees and export rebates
This bill would charge a border fee on covered imports and give rebates on covered exports to match U.S. carbon costs. The President would notify other countries, and Treasury would set rules within one year. Sectors with high greenhouse gas and trade intensity would be presumed covered. Some least‑developed countries and certified low‑emission countries could be exempt. The President could pause fees for a sector if it is not in the national, economic, or environmental interest.
Changes to coal project tax credit
This bill would change the section 48A credit rules. It would lower the size threshold from 400 MW to 200 MW and require 60% CO2 sequestration for certain older units. If a retrofit had a BACT analysis after August 8, 2005, it would have to meet that removal level. Remaining credits could be reallocated every six months until used.
State help for low‑income energy bills
This bill would give annual grants to States from 2027 through 2036 to help eligible low‑income households. To qualify, income would need to be at or below 150% of poverty and the household must be in SNAP or similar programs, meet the Medicare Part D low‑income rules, or receive SSI. States would get shares based on emissions tied to energy sold in the State and must tell Treasury how they will distribute the money each year.
Help for displaced energy workers
For 10 years, this bill would fund help for energy workers who lose jobs because of the Act and some nuclear plant workers. Help could include retraining, moving costs, early retirement, and health benefits. It would support local redevelopment and allow transfers to the UMWA pension plan, with limits based on its funded level.
Prevailing wages on funded projects
This bill would require contractors on projects funded or assisted by this Act to pay at least local prevailing wages. The Labor Department would set rates and enforce them.
Repeal federal gas and jet fuel taxes
This bill would repeal federal motor vehicle and aviation fuel excise taxes for transactions after December 31, 2025. That could lower the tax portion of fuel prices. Actual price changes would depend on markets.
Bipartisan National Climate Commission
This bill would create a 10‑member bipartisan climate commission with two co‑chairs. Members would be appointed within 180 days, serve six‑year terms, set emissions goals for 2031 and every five years through 2056, and start reports in 2032. The Commerce Secretary could accept disclosed private donations. It would authorize $5 million each year from 2027 through 2039.
EPA can set GHG rules for vehicles
This bill would let EPA set greenhouse gas limits for new cars and engines and grant waivers under current law. It would also let EPA set limits for aircraft engines, but not stricter than global ICAO standards. EPA could set limits for nonroad engines and vehicles, like some construction and farm equipment.
Sponsors & CoSponsors
Sponsor
Fitzpatrick
PA • R
Cosponsors
Carbajal
CA • D
Sponsored 5/13/2025
Roll Call Votes
No roll call votes available for this bill.
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HR4393 — DIGNIDAD (Dignity) Act of 2025
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HR3001 — To advance commonsense priorities.
Creates a federal carbon price on greenhouse gas emissions. It imposes per‑ton taxes on fossil fuels, industrial sources, and certain product uses, pairs those taxes with border adjustments on imports and exports, and channels most revenue into a new RISE Trust Fund for transport, resilience, grants, and clean‑energy programs. - Low-income households: State grants from the RISE Trust Fund help households with income up to 150% of the federal poverty line and receive about 10% of RISE funds for distribution through state plans. - Manufacturers and trade: Border tax adjustments apply to eligible GHG‑intensive, trade‑intensive sectors to tax imports and rebate exports; sectors meeting roughly 5% GHG intensity and 15% trade intensity are presumptively eligible. - Energy producers and heavy industries: A fossil fuel tax starts at $35 per metric ton CO2e in 2027 and increases yearly by CPI plus 5 percentage points, with an extra $4 per ton if cumulative emissions exceed set caps; the law creates refund paths for verified carbon capture and certain noncombustive uses.
HR2725 — Affordable Housing Credit Improvement Act of 2025
Rewrites and expands the Low‑Income Housing Tax Credit to boost construction and affordability for very low‑income renters. It would rename the program the Affordable Housing Credit and change how states get credits, who counts as low‑income, and how projects qualify and claim credits. - Families and residents: Would change tenant rules so most full‑time students under age 24 do not count as low‑income occupants, allow tenant‑based voucher payments to be excluded from rent calculations in certain projects, and add protections for survivors of domestic violence and for veterans. - Developers and owners: Would raise state allocations and set the minimum allocation at $4,876,000 in 2025, create a bigger credit when at least 20% of units serve extremely low‑income households, treat relocation costs as eligible rehab expenses, and tighten acquisition‑basis and foreclosure timing rules. - States, tribes, and rural areas: Would require housing agencies to apply community revitalization and cost‑reasonableness criteria, add Indian areas and rural areas to difficult development area rules with specific NAHASDA exceptions, and bar prioritizing local official approval or contributions in allocation plans.
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