HR2902-118

1. Short title This Act may be cited as the Restoring Fuel Market Freedom Act of 2023.

2. Amendment of 1986 Code Except as otherwise expressly provided, whenever in this Act an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Internal Revenue Code of 1986.

3. Repeal of Alcohol fuels credit Section 40 is repealed. Section 25C(d)(3)(B) is amended by inserting , as in effect on the day before the date of the enactment of the Restoring Fuel Market Freedom Act of 2023 after section 40. Section 38(b) is amended by striking paragraph (3). Section 168(l)(2)(A) is amended by inserting as in effect on the day before the date of the enactment of the Restoring Fuel Market Freedom Act of 2023 after section 40(b)(6)(E). Section 196(c) is amended by striking paragraph (3). Section 4101(a)(1) is amended by striking , and every person producing second generation biofuel (as defined in section 40(b)(6)(E)). Section 4014(a)(1) is amended by striking , 40,. The table of sections for subpart D of part IV of subchapter A of chapter 1 of subtitle A is amended by striking the item relating to section 40. The amendments made by this section shall apply to fuels produced after the date of the enactment of this section.

4. Repeal of biodiesels fuel credit Section 40A is repealed. Section 25C(d)(3)(A) is further amended by inserting , as in effect on the day before the date of the enactment of the Restoring Fuel Market Freedom Act of 2023 after section 40A. Section 30C(C)(1)(B)(ii)(I) is amended by inserting (as in effect on the day before the date of the enactment of the Restoring Fuel Market Freedom Act of 2023) after section 40A(d)(1). Section 38(b) is further amended by striking paragraph (17). Section 196(c) is further amended by striking paragraph (11). Section 4101(a)(1) is further amended by striking , every person producing or importing biodiesel (as defined in section 40A(d)(1)). Section 4104(a)(1) is further amended— by striking sections and inserting section, and by striking and 40A,. Section 7704(d)(1)(E) is amended by inserting , as in effect on the day before the date of the enactment of the Restoring Fuel Market Freedom Act of 2023 after 40A(d)(1). The table of sections for subpart D of part IV of subchapter A of chapter 1 of subtitle A is amended by striking the item relating to section 40A. The amendments made by this section shall apply to fuels sold or used after the date of the enactment of this section.

5. Repeal of sustainable aviation fuel credit Section 40B is repealed. Section 38(b) is further amended by striking paragraph (35). Section 4101(a)(1) is further amended by striking , every person producing or importing sustainable aviation fuel (as defined in section 40B). The table of sections for subpart D of part IV of subchapter A of chapter 1 of subtitle A is amended by striking the item relating to section 40. The amendments made by this section shall apply to fuel sold or used after the date of the enactment of this section.

6. Repeal of specific inclusion of alcohol and biodiesel fuel credits in gross income Section 87 is repealed. Section 56(a) is amended by striking paragraph (7). The table of sections for part II of subchapter B of chapter 1 of subtitle A is amended by striking the item relating to section 87. The amendments made by this section shall apply to fuel sold or used after the date of the enactment of this section.

7. Repeal of clean fuel production credit Section 45Z is repealed. Section 13704 of Public Law 117–169 is amended by striking subsection (b). The table of sections for subpart D of part IV of subchapter A of chapter 1 is amended by striking the item relating to section 45Z. The amendments made by this section shall apply to transportation fuels produced after the date of the enactment of this section.

8. Repeal of alcohol fuel, biodiesel, and alternative fuel mixtures credit Section 6426 is repealed. Section 4101(a)(1) is further amended by striking or alcohol (as defined in section 6426(b)(4)(A)). Section 4104(a)(2) is further amended by striking , 6426,. Section 7704(d)(1)(E), as amended by section 4(b)(7), is further amended by inserting such sections were after , as. Section 9503(b)(1) is amended by striking credits under section 6426. The table of sections for subchapter B of chapter 65 of subtitle F is amended by striking the item relating to section 6426. The amendments made by this section shall apply to fuel used or sold after the date of the enactment of this section.

9. Repeal of payments for certain fuels not used for taxable purposes Section 6427 is amended by striking subsection (e). Section 34 is amended— in subsection (a), by inserting and after the comma at the end of paragraph (1), by striking , and, and inserting a period at the end of paragraph (2), and by striking paragraph (3), and in subsection (b)— by striking or 6427,, and by striking or 6427(k). Section 4007(b) of the CARES Act (15 U.S.C. 9046(b)) is amended to read as follows: In the case of kerosene used in commercial aviation (as defined in section 4083 of the Internal Revenue Code of 1986) during the excise tax holiday period no tax shall be imposed on such kerosene under— section 4041(c) of the Internal Revenue Code of 1986, or section 4081 of such Code (other than at the rate provided in subsection (a)(2)(B) thereof). Section 4041 is further amended by adding at the end the following new subsection: Each reference to section 6427 in this section shall be applied as such section was in effect on the date of the enactment of the Restoring Fuel Market Freedom Act of 2023. Section 4081(c) is amended by striking (or with respect to which a credit or payment was allowed or made by reason of section 6427). Section 4082(d)(2) is amended to read as follows: To the extent provided in regulations, subsection (a)(2) shall not apply to kerosene received by a wholesale distributor of kerosene if such distributor is registered under section 4101 with respect to the tax imposed by section 4081 on kerosene. Section 4084 is amended by striking paragraph (3). Section 4041(a)(2) is further amended by striking or 6427(e). Section 6206 is amended— by striking section 6420, 6421, or 6427 and inserting section 6420 or 6421, by striking or 4081 (with respect to payments under section 6427), by striking section 6416(a)(4), 6420, 6421, or 6427, and inserting section 6416(a)(4), 6420, or 6421,. Section 6416(a)(4)(C) is amended by inserting (as such section was in effect on the date of the enactment of the Restoring Fuel Market Freedom Act of 2023) after section 6427(i)(4). Section 6421(d) is amended by striking paragraph (2). Section 6504(8) is amended by striking section 6420, 6421, or 6427 and inserting section 6420 or 6421. Section 6675(b)(1) is amended by striking section 6416(a)(4), 6420, 6421, or 6427, and inserting section 6416(a)(4), 6420, or 6421,. Section 7210 is amended by striking 6427(j)(2),. Section 7603 is amended by striking 6427(j)(2),. Section 7604 is amended by striking 6427(j)(2), each place such term appears. Section 7605 is amended— by striking , 6427(j)(2), and by striking section 6420(e)(2), 6421(g)(2), or 6427(j)(2) and inserting section 6420(e)(2) or 6421(g)(2). Section 7609 is amended by striking 6427(j)(2),. Section 7610 is amended by striking 6427(j)(2),. Section 9502(d) is amended— in paragraph (2), by striking , 6421 (relating to amounts paid in respect of gasoline used for certain nonhighway purposes), or 6427 (relating to fuels not used for taxable purposes) (other than subsection (l)(4) thereof) and inserting or 6421 (relating to amounts paid in respect of gasoline used for certain nonhighway purposes), and in paragraph (3), by striking (other than payments made by reason of paragraph (4) of section 6427(l)). Section 9503(c) is amended by striking paragraph (5). The amendments made by this section shall apply to fuel sold or used after the date of the enactment of this section. (b)Use of Kerosene in Commercial AviationIn the case of kerosene used in commercial aviation (as defined in section 4083 of the Internal Revenue Code of 1986) during the excise tax holiday period no tax shall be imposed on such kerosene under—(1)section 4041(c) of the Internal Revenue Code of 1986, or(2)section 4081 of such Code (other than at the rate provided in subsection (a)(2)(B) thereof).. (n)References to section 6427Each reference to section 6427 in this section shall be applied as such section was in effect on the date of the enactment of the Restoring Fuel Market Freedom Act of 2023.. (2)Wholesale distributorsTo the extent provided in regulations, subsection (a)(2) shall not apply to kerosene received by a wholesale distributor of kerosene if such distributor is registered under section 4101 with respect to the tax imposed by section 4081 on kerosene..