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.

Bill Number

H.R. 8600

Origin Chamber

House

Congress

119th Congress, Session 2

Policy Area

Taxation

Status

Introduced

Latest Action

2026-04-30: Referred to the House Committee on Ways and Means.

Last Updated

2026-07-10T08:05:43Z

AI-Generated Summary

Purpose

This bill aims to provide temporary relief from certain federal excise taxes on fuel when gasoline prices are high, while offsetting revenue losses by denying specific tax credits and deductions to oil and gas companies during those same periods.

Key Provisions

• Fuel Tax Suspension: Amends Section 4081 of the Internal Revenue Code (IRC) to reduce the excise tax on gasoline and certain fuels by 1 cent per gallon for every cent that the national average gasoline price exceeds $3.99 per gallon in a given month (tax cannot go below zero).
• Trust Fund Replenishment: Requires the Treasury Secretary to transfer equivalent amounts from the general fund to the Highway Trust Fund and Leaking Underground Storage Tank Trust Fund to replace lost revenue, treating these transfers as if they were regular tax receipts.
• Oil and Gas Tax Restrictions (effective for taxable years after December 31, 2025):
• Suspends deductions for intangible drilling costs (Section 263(c)).
• Disallows the enhanced oil recovery credit (Section 43).
• Excludes production from the marginal well credit (Section 45I).
• These restrictions apply only during months when the gasoline price threshold is exceeded.

Significant Changes to Existing Law

• Introduces a price-triggered partial suspension of fuel excise taxes under IRC Section 4081, which previously imposed fixed rates without such adjustments.
• Adds new limitations on oil and gas industry tax benefits (deductions and credits), tying them directly to gasoline price levels—a novel mechanism not previously in the IRC.
• Mandates general fund transfers to maintain trust fund balances, preventing shortfalls in highway and storage tank funding.

Potential Impacts

• Citizens: Drivers and fuel consumers could see lower gasoline prices during high-price periods due to reduced excise taxes passed on at the pump.
• Government Agencies: Treasury Department handles transfers and price monitoring; Highway Trust Fund and Leaking Underground Storage Tank Trust Fund remain fully funded, avoiding cuts to road maintenance or cleanup programs.
• No direct international relations impact noted.

Main Stakeholders Affected

• Consumers and Businesses: Fuel users (e.g., drivers, trucking companies) benefit from tax relief.
• Oil and Gas Companies: Face higher effective taxes due to lost deductions and credits during high-price months.
• Federal Government: Treasury, IRS (for enforcement), and transportation/environmental agencies relying on trust funds.
• States and Localities: Indirectly affected via sustained highway funding.

Notable Legal, Constitutional, or Political Implications

• Legal: Relies on Treasury to determine "national average price of gasoline" (method unspecified, potentially requiring regulatory clarification); changes are temporary and conditional, avoiding permanent revenue loss.
• Constitutional: No apparent issues; falls under Congress's taxing and spending powers (Article I, Section 8).
• Political: Balances consumer relief with industry disincentives during price spikes, potentially viewed as addressing "price gouging" without new taxes; effective date aligns with future fiscal years.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Boyle, Brendan F. [D-PA-2]

Cosponsors (8)

Rep. Carson, André [D-IN-7], Rep. Carbajal, Salud O. [D-CA-24], Rep. Landsman, Greg [D-OH-1], Rep. Keating, William R. [D-MA-9], Rep. Huffman, Jared [D-CA-2], Rep. Larson, John B. [D-CT-1], Rep. Tokuda, Jill N. [D-HI-2], Rep. Whitesides, George [D-CA-27]

Recent Actions

• 2026-04-30: Referred to the House Committee on Ways and Means.
• 2026-04-30: Introduced in House
• 2026-04-30: Introduced in House

Bill Versions

• 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. — issued 2026-04-30 — PDF (4 pages)