Restoring Fuel Market Freedom Act of 2025
Summary
What This Bill Does
The Restoring Fuel Market Freedom Act repeals fuel-related tax incentives. It repeals section 40 alcohol fuels credit for fuels produced after enactment, section 40A biodiesel fuel credit for fuels sold or used after enactment, section 40B sustainable aviation fuel credit for fuel sold or used after enactment, section 45Z clean fuel production credit for transportation fuels produced after enactment, section 6426 alcohol fuel, biodiesel, and alternative fuel mixture credits, and expired payment provisions in section 6427(e). It makes numerous conforming changes to general business credit rules, gross income inclusion, registration rules, excise tax cross-references, tax-exempt income rules, master limited partnership qualifying income, elective payment, transferability, and Highway Trust Fund provisions. The practical effect is to remove federal income and excise tax credit support for ethanol, biodiesel, sustainable aviation fuel, clean transportation fuel, and certain fuel mixtures after enactment while preserving cross-references only as needed for prior-law treatment.
Who Benefits and How
Federal taxpayers benefit if repealed fuel credits reduce federal revenue losses. Fuel manufacturers without tax credits benefit competitively if subsidized alcohol, biodiesel, sustainable aviation, and clean fuels lose federal support. Conventional fuel suppliers benefit from reduced tax-code preference for competing alternative fuels. IRS fuel tax staff benefit from eventual simplification after repeal and conforming amendments.
Who Bears the Burden and How
Ethanol manufacturers lose the alcohol fuels credit and related section 6426 treatment. Biodiesel manufacturers lose the biodiesel fuel credit and related fuel mixture benefits. Sustainable aviation fuel manufacturers lose section 40B credit support. Clean transportation fuel manufacturers lose section 45Z credit support, elective payment, and transferability options. Alternative fuel mixture claimants lose section 6426 credit access. Fuel tax credit buyers lose transferability opportunities tied to repealed credits.
Key Provisions
- Repeals the section 40 alcohol fuels credit for fuels produced after enactment.
- Repeals the section 40A biodiesel fuel credit for fuels sold or used after enactment.
- Repeals the section 40B sustainable aviation fuel credit and related gross income inclusion.
- Repeals the section 45Z clean fuel production credit and removes elective payment and transferability references.
- Repeals section 6426 fuel mixture credits and section 6427(e) expired payment provisions.
- Makes conforming amendments across registration, excise tax, business credit, and Highway Trust Fund provisions.
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers with clause-level evidence links.
At a Glance
What This Bill Does
Repeals federal alcohol fuel, biodiesel, sustainable aviation fuel, clean fuel production, fuel mixture, and expired non-taxable-use fuel payment credits, with conforming Internal Revenue Code changes.
Key Policy Areas
Tax, Energy, Transportation Fuels
Primary Purpose
Repeals federal alcohol fuel, biodiesel, sustainable aviation fuel, clean fuel production, fuel mixture, and expired non-taxable-use fuel payment credits, with conforming Internal Revenue Code changes.
Policy Domains
Resolution provisions
Identified Gains
- Federal taxpayers
- Fuel manufacturers without tax credits
- Conventional fuel suppliers
- IRS fuel tax staff
Identified Costs
- Ethanol manufacturers
- Biodiesel manufacturers
- Sustainable aviation fuel manufacturers
- Clean transportation fuel manufacturers
- Alternative fuel mixture claimants
- Fuel tax credit buyers
Sponsors
Legislative Progress
In CommitteeMr. Perry (for himself, Mr. Ogles, and Mr. Burlison) introduced …
Referred to the House Committee on Ways and Means.
Introduced in House
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
Alternative fuel mixture claimants, Biodiesel manufacturers, Ethanol manufacturers
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
Learn more about our methodology