S.173 - Fueling Alternative Transportation with a Carbon Aviation Tax Act of 2025 (119th Congress)
Summary
S.173, the "Fueling Alternative Transportation with a Carbon Aviation Tax Act of 2025," proposes to increase excise taxes on fuel used by private jets. The bill aims to generate revenue for the "Funding to Support Clean Communities Trust Fund." This fund would support projects related to air quality monitoring, public transit, and transportation improvements, particularly in disadvantaged communities.
Expected Effects
The bill would increase the cost of private jet travel through higher fuel taxes. Revenue generated would be directed towards environmental and transportation projects, with a focus on benefiting disadvantaged communities. The Act also eliminates certain exemptions from air transportation excise tax.
Potential Benefits
- Increased funding for air quality monitoring and improvement projects.
- Support for public transit and passenger rail infrastructure, especially near airports.
- Prioritization of funding for disadvantaged communities disproportionately impacted by air pollution.
- Potential reduction in emissions from private jet usage due to increased costs.
- Investment in cleaner transportation alternatives.
Potential Disadvantages
- Increased costs for private jet owners and operators.
- Potential negative impact on businesses that rely on private aviation.
- Possible economic burden on the aviation industry.
- Complexity in administering the tax and refund provisions.
- Potential for unintended consequences or loopholes in the tax code.
Most Disadvantaged Areas:
Constitutional Alignment
The bill's tax provisions align with the constitutional power of Congress to levy taxes for the general welfare, as outlined in Article I, Section 8. The allocation of funds to specific projects, such as air quality monitoring and public transit, falls within the scope of promoting the general welfare. The bill does not appear to infringe upon 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).