Section 1 Short title
This Act may be cited as the “Gas Prices Relief Act of 2022”.
Gas Prices Relief Act of 2022
A BILL
To amend the Internal Revenue Code of 1986 to provide a gasoline tax holiday.
Sec. 2 Findings
Congress finds the following:
As of February 2022, the Consumer Price Index rose 7.5 percent from one year ago, the largest increase in 40 years.
Compared with 2021, the energy index rose 27 percent and food costs rose 7 percent, placing an unprecedented burden on American families.
Shipping costs have increased year-over-year, raising the price of important groceries like milk, eggs, bread, meat, and other goods.
According to data from the Federal Highway Administration, the average American driver drives 14,263 miles per year. A suspension of the Federal gas tax would save the average American more than $100 per year.
The Infrastructure Investment and Jobs Act provided $118 billion in funding from the general fund to supplement the Highway Trust Fund.
The 18.4 cent Federal gas tax disproportionately impacts rural Americans, who must travel longer distances to go to the grocery store, see their doctors, go to the pharmacy to pick up their prescriptions, or travel to their jobs or school.
On August 30, 2021, the Federal Trade Commission announced enhanced efforts to step up enforcement on oil and gas companies for alleged collusion that led to increased gas prices for American consumers.
Since 2008, Congress has transferred funds from the general fund to the Highway Trust Fund three times to ensure the fund remained solvent.
Oil companies reported record profits in 2021 while Americans continue to struggle under high gas prices, inflation, and ongoing impacts of a pandemic.
The Organization of Petroleum Exporting Countries (OPEC) takes actions to control oil production by considerably influencing international oil prices at the expense of American consumers.
A temporary gas tax holiday is one way to lower prices for American consumers as we continue to work towards long-term energy independence.
Sec. 3 2022 gasoline tax holiday
In general— In the case of gasoline removed, entered, or sold on or after the date of the enactment of this Act and before January 1, 2023—
the rate of tax under section 4081(a)(2)(A)(i) of the Internal Revenue Code of 1986 shall be zero; and
the Leaking Underground Storage Tank Trust Fund financing rate under section 4081(a)(2) of such Code shall not apply to gasoline to which the rate under paragraph (1) applies.
Transfers to Trust Fund—
In general— The Secretary of the Treasury shall transfer from the general fund to the Highway Trust Fund established under section 9503(a) of the Internal Revenue Code of 1986 and the Leaking Underground Storage Tank Trust Fund established under section 9508(a) of such Code amounts equal to the reduction in amounts credited (but for this subsection) to each such Trust Fund by reason of subsection (a).
Coordination rules—
Leaking Underground Storage Tank Trust Fund— Amounts transferred to the Leaking Underground Storage Tank Trust Fund under paragraph (1) shall be treated for purposes of sections 9503(b)(1) and 9508(b)(2) of such Code as taxes received in the Treasury under section 4081 of such Code attributable to the Leaking Underground Storage Tank Trust Fund financing rate.
Highway Trust Fund— Amounts transferred to the Highway Trust Fund under paragraph (1) shall be treated for purposes of section 9503(b)(1) of such Code as taxes received in the Treasury under section 4081 of such Code which are not attributable to the Leaking Underground Storage Tank Trust Fund financing rate.
Benefits of tax reduction should be passed on to consumers—
It is the policy of Congress that—
consumers immediately receive the benefit of the reduction in taxes resulting from the application of subsection (a); and
transportation motor fuels producers and other dealers take such actions as necessary to reduce transportation motor fuels prices to reflect such reduction.
Enforcement— The Secretary may use all applicable authorities to ensure that the benefit of the reduction in taxes resulting from the application of subsection (a) is received by consumers.