Consumer Fuel Costs Relief Act

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 5530 Introduced in Senate (IS)]

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119th CONGRESS
  2d Session
                                S. 5530

To amend the Internal Revenue Code of 1986 to provide a tax holiday for 
                       motor and aviation fuels.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                           September 24, 2026

   Mr. Kelly introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL

 
To amend the Internal Revenue Code of 1986 to provide a tax holiday for 
                       motor and aviation fuels.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Consumer Fuel Costs Relief Act''.

SEC. 2. TAX HOLIDAY FOR MOTOR AND AVIATION FUELS.

    (a) In General.--In the case of any taxable fuel removed, entered, 
or sold on or after the date of the enactment of this Act and before 
October 1, 2027--
            (1) the rate of tax under section 4081(a)(2)(A) of the 
        Internal Revenue Code of 1986 shall be zero, and
            (2) the Leaking Underground Storage Tank Trust Fund 
        financing rate under section 4081(a)(2)(B) of such Code shall 
        not apply to taxable fuel to which the rate under paragraph (1) 
        applies.
    (b) Transfers to Trust Fund.--
            (1) In general.--The Secretary of the Treasury shall 
        transfer from the general fund to the Airport and Airway Trust 
        Fund established under section 9502(a) of the Internal Revenue 
        Code of 1986, the Highway Trust Fund established under section 
        9503(a) of such Code, and the Leaking Underground Storage Tank 
        Trust Fund established under section 9508(a) of such Code 
        amounts equal to the reduction in amounts credited (but for 
        this subsection) to each such Trust Fund by reason of 
        subsection (a).
            (2) Coordination rules.--
                    (A) Leaking underground storage tank trust fund.--
                Amounts transferred to the Leaking Underground Storage 
                Tank Trust Fund under paragraph (1) shall be treated 
                for purposes of sections 9503(b)(1) and 9508(b)(2) of 
                such Code as taxes received in the Treasury under 
                section 4081 of such Code attributable to the Leaking 
                Underground Storage Tank Trust Fund financing rate.
                    (B) Highway trust fund.--Amounts transferred to the 
                Highway Trust Fund under paragraph (1) shall be treated 
                for purposes of section 9503(b)(1) of such Code as 
                taxes received in the Treasury under section 4081 of 
                such Code which are not attributable to the Leaking 
                Underground Storage Tank Trust Fund financing rate.
    (c) Benefits of Tax Reduction Should Be Passed on to Consumers.--
            (1) It is the policy of Congress that--
                    (A) consumers immediately receive the benefit of 
                the reduction in taxes resulting from the application 
                of subsection (a),
                    (B) transportation motor fuels producers and other 
                dealers take such actions as necessary to reduce 
                transportation motor fuels prices to reflect such 
                reduction,
                    (C) aviation gasoline producers, airline service 
                providers, and other dealers take such actions as 
                necessary to ensure passengers immediately receive the 
                benefit of the reduction in taxes resulting from the 
                application of subsection (a), and
                    (D) transportation motor fuels producers, airline 
                service providers, and other dealers that fail to 
                reduce prices for consumers to reflect such reduction 
                shall be subject to monetary penalties which are not 
                less than the amount of the reduction in taxes which 
                should have been passed on to consumers.
            (2) Enforcement.--
                    (A) Treasury.--The Secretary of the Treasury shall 
                use all applicable authorities to ensure that the 
                benefit of the reduction in taxes resulting from the 
                application of subsection (a) is received by consumers.
                    (B) FTC and cftc.--The Federal Trade Commission and 
                the Commodity Futures Trading Commission shall use all 
                applicable authorities to monitor oil, diesel, and 
                gasoline markets to prevent price gouging and market 
                manipulation in such markets.
    (d) Taxable Fuel.--For purposes of this section, the term ``taxable 
fuel'' has the same meaning given such term under section 4083(a)(1) of 
the Internal Revenue Code of 1986.
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