Section 1 Short title
This Act may be cited as the “Restoring Fuel Market Freedom Act of 2023”.
Restoring Fuel Market Freedom Act of 2023
A BILL
To amend the Internal Revenue Code of 1986 to repeal the alcohol fuels credit, the biodiesels fuel credit, the sustainable aviation fuel credit, the clean fuel production credit, the alcohol fuel, biodiesel, and alternative fuel mixtures credit, and other related provisions.
Sec. 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.
Sec. 3 Repeal of Alcohol fuels credit
In general— Section 40 is repealed.
Conforming amendments—
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,”.
Clerical Amendment— 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.
Effective date— The amendments made by this section shall apply to fuels produced after the date of the enactment of this section.
Sec. 4 Repeal of biodiesels fuel credit
In general— Section 40A is repealed.
Conforming amendments—
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)”.
Clerical amendment— 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.
Effective date— The amendments made by this section shall apply to fuels sold or used after the date of the enactment of this section.
Sec. 5 Repeal of sustainable aviation fuel credit
In general— Section 40B is repealed.
Conforming amendments—
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)”.
Clerical Amendment— 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.
Effective date— The amendments made by this section shall apply to fuel sold or used after the date of the enactment of this section.
Sec. 6 Repeal of specific inclusion of alcohol and biodiesel fuel credits in gross income
In general— Section 87 is repealed.
Conforming amendments— Section 56(a) is amended by striking paragraph (7).
Clerical amendment— 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.
Effective date— The amendments made by this section shall apply to fuel sold or used after the date of the enactment of this section.
Sec. 7 Repeal of clean fuel production credit
In general— Section 45Z is repealed.
Conforming amendments— Section 13704 of Public Law 117–169 is amended by striking subsection (b).
Clerical Amendment— 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.
Effective date— The amendments made by this section shall apply to transportation fuels produced after the date of the enactment of this section.
Sec. 8 Repeal of alcohol fuel, biodiesel, and alternative fuel mixtures credit
In general— Section 6426 is repealed.
Conforming amendments—
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”.
Clerical Amendment— The table of sections for subchapter B of chapter 65 of subtitle F is amended by striking the item relating to section 6426.
Effective date— The amendments made by this section shall apply to fuel used or sold after the date of the enactment of this section.
Sec. 9 Repeal of payments for certain fuels not used for taxable purposes
In general— Section 6427 is amended by striking subsection (e).
Conforming amendments—
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:
“(b) Use of Kerosene in Commercial Aviation—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—
“(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).”
Section 4041 is further amended by adding at the end the following new subsection:
“(n) References to section 6427—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:
“(2) Wholesale distributors—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).
Effective date— The amendments made by this section shall apply to fuel sold or used after the date of the enactment of this section.