Gas Tax Relief Act

Bill Number: H.R. 8753
Origin Chamber: House
Congress: 119th Congress, Session 2
Policy Area: Taxation
Status: Introduced
Latest Action: 2026-05-12: Referred to the House Committee on Ways and Means.
Last Updated: 2026-06-05T18:24:03Z

AI-Generated Summary

Purpose This legislation aims to temporarily suspend the federal excise tax on gasoline and diesel fuel to provide relief from fuel costs.

Key Provisions

The bill creates a tax holiday for taxable fuels (gasoline and diesel) removed, entered, or sold from the date of enactment until an applicable date.
During this period, the tax rate under the Internal Revenue Code is set to zero, and the Leaking Underground Storage Tank Trust Fund financing rate does not apply.
The Treasury Department must transfer amounts from the general fund to the Highway Trust Fund and the Leaking Underground Storage Tank Trust Fund to offset revenue losses.
The applicable date is initially 90 days after enactment, with options for extension to 215 days or a phased reimplementation based on presidential determinations regarding economic conditions.

Significant Changes to Existing Law

It temporarily overrides the standard tax rates in section 4081 of the Internal Revenue Code by reducing them to zero for a defined period.
It introduces new transfer mechanisms and coordination rules to maintain funding levels for the Highway Trust Fund and Leaking Underground Storage Tank Trust Fund despite the tax suspension.
It grants the President discretionary authority to adjust the duration and reimplementation of the tax rates.

Potential Impacts

On government agencies: The Treasury would handle transfers from general revenue to trust funds, potentially affecting federal budgeting processes.
On citizens: Drivers and fuel users may experience lower prices at the pump during the holiday period.
On international relations: No direct effects are specified in the legislation.

Main Stakeholders Affected

Fuel consumers and vehicle owners.
Petroleum industry participants involved in removal, entry, or sale of taxable fuels.
The Department of the Treasury and trust fund administrators.
Recipients of Highway Trust Fund and Leaking Underground Storage Tank Trust Fund expenditures, such as transportation projects and environmental cleanup efforts.
The President and Congress, due to the discretionary provisions.

Notable Legal, Constitutional, or Political Implications

The bill relies on presidential discretion for extensions and phase-ins, which could involve executive authority over tax policy implementation.
It maintains trust fund solvency through general fund transfers rather than direct tax collections, altering standard revenue allocation under the Internal Revenue Code.

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