The Tar Sands Tax Loophole Elimination Act would close a tax loophole by requiring tar sands oil products to be taxed the same way as traditional crude oil under federal excise tax law. Currently, tar sands-derived oil may avoid the federal petroleum excise tax by not being explicitly classified as crude oil, even though it functions as such. The bill amends the tax code to clarify that oils derived from tar sands, bitumen, and similar sources are subject to the same federal excise tax as conventional crude oil. The legislation also gives the Treasury Secretary regulatory authority to extend the tax to other fuel products that pose similar hazards. The bill would take effect immediately upon enactment and is sponsored by progressive House Democrats including Representatives Schakowsky, Ocasio-Cortez, and Tlaib.
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