April 30, 2026
Mr. Boyle of Pennsylvania introduced the following bill; which was referred to the Committee on Ways and Means
To amend the Internal Revenue Code of 1986 to temporarily suspend certain fuel excise taxes for fuel separated during periods in which the national average price of gasoline exceeds $3.99 per gallon, and to prohibit certain credits or deductions for oil and gas companies during such periods.
Section 1. Suspension of tax on removal, entry, or sale of certain fuel; suspension of certain credits and deductions for oil and gas companies
(a) In general
(1) In general
Section 4081 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:
(f) Partial suspension of tax during certain periods
In any month during which the national average price of gasoline exceeds $3.99 per gallon, the tax imposed by subsection (a) shall be reduced (but not below zero) by 1 cent for each cent of such excess average price.
(2) Transfers to Trust Fund
(A) In general
The Secretary of the Treasury (or the Secretary’s delegate) shall transfer from the general fund to the Highway Trust Fund established under section 9503(a) of the Internal Revenue Code of 1986 and the Leaking Underground Storage Tank Trust Fund established under section 9508(a) of such Code amounts equal to the reduction in amounts credited (but for this subsection) to each such Trust Fund by reason of the partial suspension under section 4081(f) of such Code (as added by paragraph 1 of this section).
(B) Coordination rules
(i) Leaking Underground Storage Tank Trust Fund
Amounts transferred to the Leaking Underground Storage Tank Trust Fund under subparagraph (A) shall be treated for purposes of sections 9503(b)(1) and 9508(b)(2) of such Code as taxes received in the Treasury under section 4081 of such Code attributable to the Leaking Underground Storage Tank Trust Fund financing rate.
(ii) Highway Trust Fund
Amounts transferred to the Highway Trust Fund under subparagraph (A) shall be treated for purposes of section 9503(b)(1) of such Code as taxes received in the Treasury under section 4081 of such Code which are not attributable to the Leaking Underground Storage Tank Trust Fund financing rate.
(b) Intangible drilling costs
Section 263(c) of such Code is amended by adding at the end the following new sentence: This section shall not apply with respect to any costs incurred during any month described in section 4081(f).
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(c) Enhanced oil recovery credit
Section 43 of such Code is amended by adding at the end the following new subsection:
(f) Credit not applicable to costs paid or incurred during disqualified periods
No credit shall be allowed under this section for costs paid or incurred during any month described in section 4081(f).
(d) Marginal well credit
Section 45I(d) of such Code is amended by adding at the end the following new paragraph:
(4) Production during disqualified periods excluded
No credit shall be allowed under this section for production during any month described in section 4081(f).
(e) Effective date
The amendments made by this section shall apply to taxable years beginning after December 31, 2025.