American Fuel Affordability Act
Repeals certain diesel taxes and creates tax benefits for qualifying new U.S. refineries.
In the House Ways and Means Committee since Sept. 24, 2026, 11 days after it was introduced. Most bills never leave committee.
- INTRODUCEDINTROSEP 24, 2026
- COMMITTEECOMM.IN COMMITTEE
- HOUSEHOUSE—
- SENATESENATE—
- LAWLAW—
What the bill would do, and why it matters
Federal taxes and tax incentives affect the cost of producing and selling fuel. The American Fuel Affordability Act would repeal certain diesel excise taxes and create tax benefits for building and operating qualifying new U.S. refineries. It would also replace specified reductions in two trust funds with transfers from the general fund.
- INTRODUCED ONLY This bill has been introduced and possibly referred to a committee, but it has not passed any vote. Most introduced bills never become law — they die in committee without a hearing.
- DATA NOTE No Congressional Research Service summary was available.
- Repeals certain diesel excise taxes
The bill would repeal specified federal excise taxes on diesel fuel. The repeal would apply to diesel fuel sold, used, removed, or entered after enactment.
- Creates a refinery construction tax credit
A taxpayer could claim a credit equal to 35% of the qualified investment in a qualifying U.S. refinery. Construction would have to begin after enactment and before January 1, 2032, and the refinery would have to be placed in service before January 1, 2037.
- Adds a credit for refinery fuel production
A qualifying new refinery could receive a credit of 5 cents per gallon of gasoline or diesel it produces and sells to an unrelated person. The refinery must be placed in service within 10 years of producing the gallon.
- Replaces lost trust fund tax receipts
The Treasury would transfer from the general fund to the Highway Trust Fund and the Leaking Underground Storage Tank Trust Fund amounts equal to the reductions in amounts credited to each fund because of the diesel tax repeal.
- Makes a refinery tax allowance permanent
The bill would remove specified time limits on a special tax allowance for property integral to the new construction of a qualifying refinery.
The bill would change federal tax costs for diesel fuel and for businesses investing in or operating qualifying new refineries. Its tax credits are aimed at encouraging refinery construction and fuel production, but the text does not require companies to pass tax benefits on to fuel buyers.
The bill would also shift replacement amounts for the two trust funds from the general fund, rather than leave the specified reductions in their credited amounts unreplaced.
Written from the bill text.
The path it took, step by step
- IntroducedSEP 24, 2026HOUSESEP 24, 2026By Rep. SteubeReferred to Ways and Means
- SAME DAYNOWHouse committeeSEP 24, 2026WAYS & MEANS NOWSEP 24, 2026In committee for 11 daysNo hearing yet
- 11 DAYS SO FARPassed the House—HOUSE FLOOR—Not scheduled
- Senate committee—SENATE—
- Passed the Senate—SENATE FLOOR—Not scheduled
- Resolve differencesONLY IF NEEDEDBOTH CHAMBERSONLY IF NEEDEDSkipped if the other chamber passes the same text
- Signed into law—PRESIDENT—10 days to sign or veto
- SEP 242026SEP 24, 2026REFERREDHOUSEReferred to the House Committee on Ways and Means.
- SEP 242026SEP 24, 2026INTRODUCEDHOUSEIntroduced in House
At day 11, this bill is already older than 3% of the laws passed this Congress were when they were signed.
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