MARKET CHOICE Act
Sponsors
Legislative Progress
In CommitteeMr. Fitzpatrick (for himself and Mr. Carbajal) introduced the following …
Summary
What This Bill Does
This legislation (MARKET CHOICE Act) eliminates federal gasoline and diesel excise taxes and replaces them with a carbon tax on fossil fuels starting at $40 per metric ton of CO2 equivalent in 2027, increasing annually by 5% plus inflation. The tax applies to fossil fuel combustion, industrial processes (cement, steel, refineries, etc.), and certain products. Revenue funds infrastructure and climate adaptation.
Who Benefits and How
Infrastructure projects receive dedicated funding from carbon tax revenue. Low-carbon energy producers gain competitive advantage as fossil fuels become more expensive. Domestic manufacturers receive border adjustment protections against imports from countries without carbon pricing. State carbon pricing programs receive credits transitioning from 100% to 0% over 5 years.
Who Bears the Burden and How
Fossil fuel producers and importers pay the carbon tax based on emissions when combusted. Energy-intensive industries (steel, cement, aluminum, chemicals) face higher costs from both fuel and process emissions. Gasoline and diesel consumers see fuel taxes replaced by carbon-based pricing. Importers of carbon-intensive goods pay border adjustments equivalent to domestic carbon costs.
Key Provisions
- Carbon tax of $40/ton CO2e in 2027, increasing 5%+inflation annually
- Covers combustion emissions, industrial process emissions, and product lifecycle emissions
- Border tax adjustments on imports from countries without equivalent carbon pricing
- Export rebates for domestic manufacturers to maintain competitiveness
- Credits for payments under state carbon pricing programs (phasing out over 5 years)
- Penalty of 3x the tax rate for nonpayment
Evidence Chain:
This summary is derived from the structured analysis below. See "Detailed Analysis" for per-title beneficiaries/burden bearers with clause-level evidence links.
Primary Purpose
Replaces the federal gasoline and diesel excise taxes with a comprehensive carbon tax starting at $40/ton in 2027, escalating annually, with border adjustments to prevent carbon leakage and protect domestic manufacturers.
Policy Domains
Legislative Strategy
"Market-based carbon pricing to reduce emissions while maintaining industrial competitiveness through border adjustments; framed as infrastructure funding mechanism rather than environmental regulation"
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
- "the_secretary"
- → Secretary of the Treasury
- "the_administrator"
- → Administrator of the Environmental Protection Agency
- "the_secretary"
- → Secretary of the Treasury
- "the_commissioner"
- → Commissioner of U.S. Customs and Border Protection
Key Definitions
Terms defined in this bill
The number of metric tons of CO2 emissions with the same global warming potential over a 100-year period as one metric ton of another greenhouse gas
Any substantial increase in greenhouse gas emissions by entities located in other countries caused by a cost of production increase in the United States resulting from implementation of this title
Coal, petroleum products, or natural gas
Carbon dioxide, nitrous oxide, methane, hydrofluorocarbons, perfluorocarbons, and sulfur hexafluoride
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