# Summary of H.R. 6665: The MARKET CHOICE Act
This bill establishes a carbon tax on greenhouse gas emissions starting in 2025 to fund infrastructure improvements while eliminating existing federal fuel taxes. The carbon tax begins at $35 per metric ton of carbon dioxide equivalent and increases annually based on inflation plus 5 percentage points, with automatic increases if emission targets are exceeded. The tax applies to fossil fuels at the point of production or import, certain industrial processes like cement and steel manufacturing, and specific products like fuel ethanol and biodiesel.
Revenue from the carbon tax is directed to a new RISE Trust Fund, with 75 percent of collections distributed as follows: 70 percent to the Highway Trust Fund for road and bridge maintenance, 10 percent to states for grants to low-income households, 4 percent for coastal flooding mitigation, and smaller percentages for programs including worker assistance, renewable energy research, and environmental conservation. The bill repeals existing federal motor vehicle and aviation fuel taxes and allows states to credit their own carbon pricing policies against the federal tax for five years, phasing out the credit thereafter.
The legislation also implements a border adjustment mechanism that taxes imported goods from high-emission industries while rebating taxes on American exports, with exemptions for least-developed countries and low-emission nations. A bipartisan National Climate Commission is established to set emissions reduction goals every five years through 2054 and assess federal policy effectiveness. The bill prohibits EPA regulation of greenhouse gas emissions from taxed sources for 12 years, unless emissions exceed specified targets, and includes support for displaced energy sector workers over a 10-year period.
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