HR3768-119

What This Bill Does

The Gas Prices Relief Act of 2025 creates a temporary federal gasoline tax holiday. For gasoline removed, entered, or sold after enactment and before January 1, 2026, the Internal Revenue Code's section 4081 gasoline excise tax rate is reduced to zero and the Leaking Underground Storage Tank Trust Fund financing rate does not apply. To avoid draining transportation and environmental cleanup trust funds, Treasury must transfer from the general fund to the Highway Trust Fund and the Leaking Underground Storage Tank Trust Fund amounts equal to the revenue each fund would otherwise have received. Those transfers are treated as if they were section 4081 gasoline taxes for trust-fund accounting. The bill states that consumers should immediately receive the benefit of the tax reduction, that transportation infrastructure funding should be protected, and that Congress intends wholesalers, retailers, and other market participants to pass the tax savings through rather than retain the margin.

Who Benefits and How

Gasoline consumers benefit if the temporary tax holiday is passed through at the pump before January 1, 2026. Gasoline retailers benefit from lower federal tax collection on covered gasoline sales during the holiday. Highway Trust Fund programs benefit from general-fund transfers replacing forgone gasoline tax receipts. Leaking Underground Storage Tank Trust Fund programs benefit from replacement transfers for the suspended financing rate.

Who Bears the Burden and How

Treasury Department staff must calculate and transfer replacement amounts from the general fund to the trust funds. IRS excise-tax administrators must implement the temporary zero rate and trust-fund accounting treatment. Federal taxpayers bear the general-fund cost of replacing fuel-tax revenue. Gasoline wholesalers face political pressure to pass the tax reduction through to consumers.

Key Provisions

• Sets the federal gasoline excise tax rate at zero through December 31, 2025.
• Suspends the Leaking Underground Storage Tank financing rate for covered gasoline.
• Requires general-fund transfers to the Highway Trust Fund and LUST Trust Fund.
• Provides trust-fund accounting treatment as if gasoline taxes had been received.
• Directs congressional policy that consumers should immediately receive the tax reduction.