To amend the Internal Revenue Code of 1986 to temporarily suspend certain fuel excise taxes for fuel separated during periods in which the national average price of gasoline exceeds $3.99 per gallon, and to prohibit certain credits or deductions for oil and gas companies during such periods.
About This Bill
Committee
Latest Action · April 30, 2026
Referred to the House Committee on Ways and Means.
This bill would temporarily reduce federal fuel excise taxes when gasoline prices spike above $3.99 per gallon. Specifically, for each cent that the national average gasoline price exceeds $3.99, the federal excise tax on fuel would be reduced by one cent during that month. To offset the lost tax revenue that normally funds highway and environmental cleanup programs, the bill requires the Treasury to transfer money from the general fund to the Highway Trust Fund and the Leaking Underground Storage Tank Trust Fund. At the same time, the bill prohibits oil and gas companies from claiming certain tax credits and deductions during these high-price periods, including deductions for intangible drilling costs and credits for enhanced oil recovery and marginal well production. The changes would take effect for tax years beginning after December 31, 2025.
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