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S. 173

BillFederalSenateIn Committee
Fueling Alternative Transportation with a Carbon Aviation Tax Act of 2025
About This Bill
Committee
Latest Action · January 21, 2025
Read twice and referred to the Committee on Finance.
Congress
119th (2025–2027)
Introduced
January 21, 2025
Cosponsors (5)
4D 0R
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Summary

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This bill significantly increases federal excise taxes on fuel used in private aviation while keeping taxes on commercial aviation at current levels. Specifically, it raises the tax on non-commercial aviation fuel from approximately 4.3 cents per gallon to $2.28 per gallon, effective January 1, 2026, with automatic annual adjustments for inflation starting in 2027. The bill creates a new "Funding to Support Clean Communities Trust Fund" that collects revenues from these increased taxes and directs the money toward air quality monitoring in disadvantaged communities, public transit infrastructure near airports, and improved bus service, with at least 50 percent of funds going to low-income and pollution-impacted neighborhoods. The bill includes limited exceptions allowing the Treasury to refund the tax increase for fuel used in scientific research, disaster evacuations, or medical emergencies, though this exception expires in 2028. Overall, the legislation targets wealthy private jet users to fund environmental and transportation improvements in underserved communities.

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