H.R.311 - Restoring Fuel Market Freedom Act of 2025 (119th Congress)
Summary
H.R.311, the Restoring Fuel Market Freedom Act of 2025, proposes to repeal several tax credits related to alcohol fuels, biodiesel, sustainable aviation fuel, clean fuel production, and alternative fuel mixtures. The bill aims to amend the Internal Revenue Code of 1986 by eliminating these credits and making conforming amendments to other sections of the code. The bill was introduced in the House of Representatives on January 9, 2025, and referred to the Committee on Ways and Means.
Expected Effects
If enacted, H.R.311 would eliminate tax incentives for the production and use of various alternative fuels. This could lead to a decrease in the production and consumption of these fuels, potentially impacting the energy market and related industries. The removal of these credits could also affect the price of fuel for consumers.
Potential Benefits
- Potential reduction in government spending and simplification of the tax code.
- May lead to a more market-driven energy sector without government intervention.
- Could encourage innovation in fuel technologies that are economically viable without subsidies.
- Could reduce the tax burden on individuals and businesses by eliminating specific tax credits.
- May lead to lower fuel prices if the credits were artificially inflating prices.
Most Benefited Areas:
Potential Disadvantages
- Potential negative impact on the alternative fuel industry and related jobs.
- Could slow down the transition to more sustainable energy sources.
- May increase reliance on traditional fossil fuels.
- Could negatively affect efforts to reduce carbon emissions and combat climate change.
- May increase fuel prices if credits were subsidizing prices.
Constitutional Alignment
The bill primarily deals with taxation and revenue, which falls under the powers granted to Congress in Article I, Section 8 of the Constitution. Specifically, Congress has the power to lay and collect taxes, duties, imposts, and excises. The repeal of tax credits is within this constitutional authority. There is no apparent conflict with any specific constitutional provision.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).