March 14, 2025
Ms. Moore of Wisconsin (for herself, Mr. Wied, Mr. Steil, Mr. Pocan, Mr. Van Orden, Mr. Fitzgerald, Mr. Grothman, Mr. Tiffany, and Ms. Van Duyne) introduced the following bill; which was referred to the Committee on Ways and Means
To amend the Internal Revenue Code of 1986 to provide refunds with respect to certain dyed fuels that are exempt from tax and with respect to which tax was previously paid.
Section 1. Refunds with respect to certain dyed fuels that are exempt from tax and with respect to which tax was previously paid
(a) In general
(a) In general
Subchapter B of chapter 65 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section:
6434. Eligible indelibly dyed diesel fuel or kerosene
(a) In general
In the case of a person which establishes to the satisfaction of the Secretary that such person removed from a terminal eligible indelibly dyed diesel fuel or kerosene, the Secretary shall pay to such person an amount (without interest) equal to the tax described in subsection (b)(1) with respect to such eligible indelibly dyed diesel fuel or kerosene.
(b) Eligible indelibly dyed diesel fuel or kerosene defined
For purposes of this section, the term
eligible indelibly dyed diesel fuel or kerosenemeans diesel fuel or kerosene—(1)
with respect to which a tax under section 4081 was previously paid (and not credited or refunded), and
(2)
which is exempt from taxation under section 4082(a).
(c) Treatment of payments
For purposes of section 1324 of title 31, United States Code, the payments under subsection (a) shall be treated in the same manner as a refund due from a credit provision referred to in subsection (b)(2) of such section.
(b) Conforming amendments
(1)
Section 6206 of such Code is amended—
(A)
by striking or 6427
each place it appears and inserting 6427, or 6434
, and
(B)
by striking 6420 and 6421
and inserting 6420, 6421, and 6434
.
(2)
Section 6430 of such Code is amended—
(A)
by striking or
at the end of paragraph (2), by striking the period at the end of paragraph (3) and inserting , or
, and by adding at the end the following new paragraph:
(4)
with respect to which payment is made under section 6434.
(3)
Section 6675 of such Code is amended—
(A)
in subsection (a), by striking or 6427 (relating to fuels not used for taxable purposes)
and inserting 6427 (relating to fuels not used for taxable purposes), or 6434 (relating to eligible indelibly dyed diesel fuel or kerosene)
, and
(B)
in subsection (b)(1), by striking or 6427
and inserting 6427, or 6434
.
(4)
The table of sections for subchapter B of chapter 65 of such Code is amended by adding at the end the following new item:
(c) Effective date
The amendments made by this section shall apply to eligible indelibly dyed diesel fuel or kerosene (as defined in section 6434(b) of the Internal Revenue Code of 1986, as added by this section) removed on or after the date that is 180 days after the date of the enactment of this Act.