Gas Tax Relief Act
Officially: “Gas Tax Relief Act” Read the full text
What it does
Read it in plain language
1Short title
This section would give the Act the short title 'Gas Tax Relief Act.'
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1. Short title This Act may be cited as the Gas Tax Relief Act .
22026 tax holiday for taxable fuels
This section would create a temporary tax holiday for taxable fuel (gasoline and diesel fuel, as defined in existing tax law) that is removed, entered, or sold on or after the date this Act is enacted and before an applicable date described below. During that window, the federal excise tax rate that normally applies to this fuel would be set to zero, and the separate Leaking Underground Storage Tank Trust Fund financing fee that normally applies to the same fuel would not apply either. Because the Highway Trust Fund and the Leaking Underground Storage Tank Trust Fund normally receive money from these taxes, the Secretary of the Treasury would transfer money from the government's general fund into each trust fund, in an amount equal to what each fund would have received if the tax had not been reduced to zero. Money transferred into the Leaking Underground Storage Tank Trust Fund would be treated as if it were tax money the fund normally receives from that fund's financing fee, and money transferred into the Highway Trust Fund would be treated as if it were tax money the fund normally receives that is not from that fee, so that other laws governing the two funds would continue to operate as though the tax had actually been collected. The applicable date that ends the tax holiday is set at 90 days after the date of enactment. However, if the President determines, in the President's sole discretion, that economic conditions call for extending the suspension of the tax, the applicable date would instead be 215 days after the date of enactment. Separately, if the President determines that a phased-in reimplementation of the tax is appropriate, the President may provide for that phase-in by restoring the tax rates that would otherwise apply under existing law in increments, beginning on the date that is 90 days after the date of enactment.
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2. 2026 tax holiday for taxable fuels (a) In general In the case of taxable fuel (as defined in section 4083(a)(1) of the Internal Revenue Code of 1986) removed, entered, or sold on or after the date of the enactment of this Act and before the applicable date— (1) the rate of tax under clauses (i) and (iii) of section 4081(a)(2)(A) of the Internal Revenue Code of 1986 shall be zero, and (2) the Leaking Underground Storage Tank Trust Fund financing rate under section 4081(a)(2)(B) of such Code shall not apply to taxable fuel to which the rate under paragraph (1) applies. (b) Transfers to Trust Fund (1) In general The Secretary of the Treasury shall transfer from the general fund to the Highway Trust Fund established under section 9503(a) of the Internal Revenue Code of 1986 and the Leaking Underground Storage Tank Trust Fund established under section 9508(a) of such Code amounts equal to the reduction in amounts credited (but for this subsection) to each such Trust Fund by reason of subsection (a). (2) Coordination rules (A) Leaking Underground Storage Tank Trust Fund Amounts transferred to the Leaking Underground Storage Tank Trust Fund under paragraph (1) shall be treated for purposes of sections 9503(b)(1) and 9508(b)(2) of such Code as taxes received in the Treasury under section 4081 of such Code attributable to the Leaking Underground Storage Tank Trust Fund financing rate. (B) Highway Trust Fund Amounts transferred to the Highway Trust Fund under paragraph (1) shall be treated for purposes of section 9503(b)(1) of such Code as taxes received in the Treasury under section 4081 of such Code which are not attributable to the Leaking Underground Storage Tank Trust Fund financing rate. (c) Applicable date For purposes of this section, the term applicable date means— (1) the date which is 90 days after the date of enactment of this Act, (2) if the President determines, in the President's sole discretion, that economic conditions merit an additional suspension of the tax on taxable fuels described in subsection (a), the date that is 215 days after the date of enactment of this Act, and (3) if the President determines that a phased-in reimplementation of the tax on taxable fuels described in subsection (a) is appropriate, the President may provide for such phased-in reimplementation through incremental restoration of the rates otherwise applicable under section 4081 beginning on the date that is 90 days after the date of enactment of this Act.
Where it is
In the House.