Restoring Fuel Market Freedom Act of 2025 | ChamberLight
Bills · HR 311
IN COMMITTEE· 119TH CONGRESS
House BillHR 311Taxation
Restoring Fuel Market Freedom Act of 2025
INTRO JAN 9· LAST ACTION JAN 9
READING
8MIN
COSPONSORS
2
READER REACTIONS0 TOTAL
NO VOTES YET · BE THE FIRST
Introduced only
LEGISLATIVE PROGRESS
STEP 2 / 8
Introduced
In Committee
Reported
Passed House
Passed Senate
Conference
To President
Became Law
WHAT THE BILL DOES
AI-written
This bill matters because it would fundamentally change how the U.S. government supports the alternative fuels industry. Currently, tax credits make it financially more attractive to produce and use fuels that are often promoted as cleaner or more sustainable alternatives to traditional fossil fuels. If these credits are removed, it could increase the cost of producing these fuels, potentially making them less competitive in the market.
Voters should care because this change could impact the pace of development and adoption of cleaner energy technologies, affect the prices they pay for fuel, and influence the overall energy mix of the country. It also has implications for government revenue, as repealing these credits would likely increase the amount of taxes collected from these industries. If this bill becomes law, it signals a shift away from government incentives for specific fuel types; if it doesn't, the current system of tax credits would continue, potentially maintaining lower costs for producers and encouraging the use of these fuels.
KEY PROVISIONS
5AI-extracted
PROVISION 01
Repeals the alcohol fuels credit (Section 40 of the Internal Revenue Code of 1986).
This ends a tax incentive for the production and use of fuels like ethanol, potentially impacting the agricultural sector and fuel prices.
PROVISION 02
Repeals the biodiesels fuel credit (Section 40A of the Internal Revenue Code of 1986).
This removes a financial incentive for biodiesel production, which could affect the renewable diesel market and related industries.
PROVISION 03
Repeals the sustainable aviation fuel credit (Section 40B of the Internal Revenue Code of 1986).
This eliminates a key incentive for the development and adoption of lower-carbon fuels in the aviation industry.
PROVISION 04
Repeals the clean fuel production credit (Section 45Z of the Internal Revenue Code of 1986).
This removes a broad incentive for various types of clean fuel production, potentially affecting a wider range of emerging fuel technologies.
PROVISION 05
Makes numerous conforming amendments throughout the tax code to align with the repeal of these credits.
These changes ensure that all other parts of the tax law accurately reflect the removal of the repealed fuel credits.
This bill matters because it would fundamentally change how the U.S. government supports the alternative fuels industry. Currently, tax credits make it financially more attractive to produce and use fuels that are often promoted as cleaner or more sustainable alternatives to traditional fossil fuels. If these credits are removed, it could increase the cost of producing these fuels, potentially making them less competitive in the market.
Voters should care because this change could impact the pace of development and adoption of cleaner energy technologies, affect the prices they pay for fuel, and influence the overall energy mix of the country. It also has implications for government revenue, as repealing these credits would likely increase the amount of taxes collected from these industries. If this bill becomes law, it signals a shift away from government incentives for specific fuel types; if it doesn't, the current system of tax credits would continue, potentially maintaining lower costs for producers and encouraging the use of these fuels.
KEY PROVISIONS
AI-extracted
high
Repeals the alcohol fuels credit (Section 40 of the Internal Revenue Code of 1986).
This ends a tax incentive for the production and use of fuels like ethanol, potentially impacting the agricultural sector and fuel prices.
high
Repeals the biodiesels fuel credit (Section 40A of the Internal Revenue Code of 1986).
This removes a financial incentive for biodiesel production, which could affect the renewable diesel market and related industries.
high
Repeals the sustainable aviation fuel credit (Section 40B of the Internal Revenue Code of 1986).
This eliminates a key incentive for the development and adoption of lower-carbon fuels in the aviation industry.
high
Repeals the clean fuel production credit (Section 45Z of the Internal Revenue Code of 1986).
This removes a broad incentive for various types of clean fuel production, potentially affecting a wider range of emerging fuel technologies.
med
Makes numerous conforming amendments throughout the tax code to align with the repeal of these credits.
These changes ensure that all other parts of the tax law accurately reflect the removal of the repealed fuel credits.
The amendments related to the alcohol fuels credit (Section 40) apply to fuels produced after the date of enactment.
Date of enactment of this section
The amendments related to the biodiesels fuel credit (Section 40A) apply to fuels sold or used after the date of enactment.
Date of enactment of this section
The amendments related to the sustainable aviation fuel credit (Section 40B) apply to fuel sold or used after the date of enactment.
Date of enactment of this section
The amendments related to the clean fuel production credit (Section 45Z) apply to fuel sold or used after the date of enactment.
GLOSSARY
AI-written
Tax Credit
A direct reduction in the amount of income tax owed by a taxpayer. It is different from a tax deduction, which only reduces the amount of income subject to tax.
Internal Revenue Code (IRC)
The official body of U.S. federal tax law, which governs how taxes are collected and enforced.
Repeal
To officially cancel or revoke a law or provision.
Conforming Amendments
Changes made to existing laws or regulations to ensure they are consistent with a new law or a repealed provision.
Alcohol Fuels Credit
A tax credit historically provided for the production and use of alcohol-based fuels, such as ethanol.
Biodiesels Fuel Credit
A tax credit historically provided for the production and use of biodiesel, a renewable fuel made from vegetable oils or animal fats.
Sustainable Aviation Fuel (SAF) Credit
A tax credit historically provided for the production and sale of aviation fuel that significantly reduces lifecycle greenhouse gas emissions compared to conventional jet fuel.
ACTION TIMELINE
2 EVENTS
JAN 9, 25
Introduced in House
INTROREFERRAL
JAN 9, 25
Referred to the House Committee on Ways and Means.
