S.1111 - To amend the Internal Revenue Code of 1986 to allow for payments to certain individuals who dye fuel, and for other purposes. (119th Congress)
Summary
S.1111 proposes amendments to the Internal Revenue Code of 1986, specifically targeting payments to individuals involved in dyeing fuel. The bill aims to provide financial relief by refunding taxes already paid on diesel fuel or kerosene that is indelibly dyed and exempt from taxation under section 4082(a). This is intended to streamline tax processes related to dyed fuels.
Expected Effects
The bill, if enacted, would create a new section (6434) within the Internal Revenue Code to facilitate payments to eligible individuals. It would also amend existing sections to include references to the new dyed fuel provisions. The changes would apply to dyed diesel fuel or kerosene removed 180 days after the enactment date.
Potential Benefits
- Provides financial relief to individuals who dye fuel by refunding previously paid taxes.
- Simplifies the tax process for eligible dyed diesel fuel and kerosene.
- Potentially reduces the cost of dyed fuel, which could benefit industries that rely on it.
- Encourages compliance with fuel dyeing regulations.
- May stimulate economic activity in sectors that utilize dyed fuels.
Most Benefited Areas:
Potential Disadvantages
- Potential for increased administrative burden on the IRS to process and verify claims.
- Risk of fraudulent claims for tax refunds.
- Possible complexity in determining eligibility for payments.
- Could create a loophole for tax evasion if not properly monitored.
- May disproportionately benefit larger fuel dyeing operations.
Constitutional Alignment
The bill aligns with the constitutional power of Congress to lay and collect taxes, duties, imposts, and excises, as outlined in Article I, Section 8, Clause 1. It also falls under the Necessary and Proper Clause (Article I, Section 8, Clause 18) as it relates to implementing tax laws. The bill does not appear to infringe on any specific constitutional rights or limitations.
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).