PlainBillCongress, translated.Legislation. Context. Public interest.Referred to the House Committee on Ways and Means.
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People & committees
Rep. Steube, W. Gregory [R-FL-17] · R–FL
Legislative record
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Referred to the House Committee on Ways and Means.
Introduced in House
Introduced in House
Primary sources
Text links open the official source. We also preserved the text version used in the PlainBill explanation below.
No related bills are listed in this snapshot. This does not establish whether the proposal has appeared in earlier Congresses.
Source last updated: Oct 5, 2026. Consult Congress.gov for the current record.
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PlainBill explanation
Based on the full Introduced in House · 2026-09-24 text. This explanation has not received human editorial review. This overview describes the proposal’s major provisions; it does not establish what its real-world effects would be.
The proposal would repeal specified federal taxes on diesel fuel and replace the resulting revenue losses to two federal trust funds with general government funds. It would also give qualifying new U.S. refineries a tax credit for construction investment and a credit for gasoline or diesel they produce and sell to unrelated buyers. Certain refinery property would receive special tax deduction treatment. These are proposed changes; the supplied evidence does not establish enactment or how much fuel prices would change.
2. Repeal of excise taxes on diesel fuel (a) Section 4041 taxes Section 4041(a)(1) of the Internal Revenue Code of 1986 is hereby repealed.
The Secretary of the Treasury 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 section 2.
the refinery construction investment credit for any taxable year is an amount equal to 35 percent of the qualified investment for such taxable year.
the refinery production credit for any taxable year is an amount equal to 5 cents per gallon of gasoline or diesel— (1) produced by the taxpayer at a qualified newly constructed refinery, and (2) sold by the taxpayer to an unrelated person during the taxable year.
6. Special allowance for qualified production property made permanent for gasoline and diesel production
Section 1 would name the legislation the American Fuel Affordability Act.
This Act may be cited as the American Fuel Affordability Act.
Section 2 would repeal Internal Revenue Code section 4041(a)(1) and delete section 4081(a)(2)(A)(iii) as part of its diesel-tax repeal. The supplied text does not reproduce those existing provisions or their tax rates.
2. Repeal of excise taxes on diesel fuel (a) Section 4041 taxes Section 4041(a)(1) of the Internal Revenue Code of 1986 is hereby repealed. (b) Section 4081 taxes Section 4081(a)(2)(A) of such Code is amended by inserting and at the end of clause (i), by striking , and at the end of clause (ii) and inserting a period, and by striking clause (iii).
Section 2 would also remove related statutory language, including a diesel-powered-train exception, section 4041(d)(3), section 4081(a)(2)(D), and section 4081(c). These are labeled conforming amendments, but their full effects cannot be determined without the existing statutory text.
(c) Conforming amendments
(2) Section 4041(b)(1)(C) of such Code is amended by striking ; except that such term shall not, for purposes of subsection (a)(1), include use in a diesel-powered train. (3) Section 4041(d) of such Code is amended by striking paragraph (3) and by redesignating paragraphs (4) and (5) as paragraphs (3) and (4). (4) Section 4081(a)(2) of such Code is amended by striking subparagraph (D). (5) Section 4081 of such Code is amended by striking subsection (c) and by redesignating subsections (d) and (e) as subsections (c) and (d).
The diesel-tax amendments would apply to diesel fuel sold, used, removed, or entered after enactment. The bill does not set a fixed calendar date for that change.
The amendments made by this section shall apply to diesel fuel sold, used, removed, or entered after the date of the enactment of this Act.
Section 3 would require the Treasury Secretary to transfer general-fund money to the Highway Trust Fund and the Leaking Underground Storage Tank Trust Fund. Each transfer would equal the reduction in that fund's credited revenue caused by section 2; the bill specifies no fixed dollar amount.
The Secretary of the Treasury 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 section 2.
For specified tax-code accounting purposes, section 3 would treat the replacement transfers as fuel-tax receipts. Transfers to the storage-tank fund would be attributed to its financing rate; transfers to the highway fund would not. Both rules refer to transfers under “paragraph (1),” leaving an unclear cross-reference in the supplied text.
(1) Leaking Underground Storage Tank Trust Fund Amounts transferred to the Leaking Underground Storage Tank Trust Fund under paragraph (1) 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. (2) Highway Trust Fund Amounts transferred to the Highway Trust Fund under paragraph (1) 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.
Section 4 would create a refinery construction investment tax credit equal to 35 percent of qualified investment. Qualified investment would be the tax basis—the value used for tax calculations—of eligible property put into service by the taxpayer during that tax year as part of an eligible facility.
For purposes of section 46, the refinery construction investment credit for any taxable year is an amount equal to 35 percent of the qualified investment for such taxable year. (b) Qualified investment For purposes of subsection (a), the term qualified investment for any taxable year means the basis of any qualified property placed in service by the taxpayer during such taxable year which is part of a qualified facility.
Eligible investment property would include tangible personal property and other physical property, including buildings or structural components used as an integral part of the facility. The property must qualify for depreciation or substitute amortization—tax deductions for its cost—and the taxpayer must complete its construction, reconstruction, or erection.
the term qualified property means property— (1) which is— (A) tangible personal property, or (B) other tangible property, including a building or its structural components, but only if such property is used as an integral part of a qualified facility, (2) with respect to which depreciation (or amortization in lieu of depreciation) is allowable, and (3) the construction, reconstruction, or erection of which is completed by the taxpayer.
A qualifying refinery would have to be in the United States and primarily designed to process liquid fuel from crude oil, fuels defined in existing section 45K(c), or directly from shale or tar sands. Construction must begin after enactment and before January 1, 2032, and the refinery must be put into service before January 1, 2037.
the term qualified facility means a facility— (A) which is a refinery located in the United States, (B) which is designed to serve the primary purpose of processing liquid fuel from crude oil or qualified fuels (as defined in section 45K(c)), or directly from shale or tar sands, (C) the construction of which begins after the date of the enactment of this section and before January 1, 2032, and (D) which is placed in service before January 1, 2037.
A facility would be excluded from the construction credit's definition of a qualified facility if another credit from the same tax-code subpart were allowed for it under section 38 in any tax year.
The term qualified facility shall not include any facility for which any credit determined under this subpart other than the credit allowed under subsection (a) is allowed under section 38 for any taxable year.
The construction credit would use rules similar to older rules for expenditures during construction and to existing rules addressing subsidized energy financing or private activity bonds. Because those referenced rules are not reproduced, the supplied text does not show the resulting calculations or adjustments.
(e) Special rules (1) Certain progress expenditure rules made applicable Rules similar to the rules of subsections (c)(4) and (d) of section 46 (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990) shall apply for purposes of subsection (a). (2) Special rule for property financed by subsidized energy financing or private activity bonds Rules similar to the rule under section 45(b)(3) shall apply for purposes of this section.
Section 4 would add the refinery construction credit to the tax code's investment-credit provisions. Its amendments would apply to property put into service after enactment, subject to the separate facility eligibility requirements.
(b) Credit included in investment credit Section 46 of such Code is amended— (1) by striking the period at the end of paragraph (7) and inserting , and, and (2) by adding at the end the following new paragraph: (8) the refinery construction investment credit.
The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act.
Section 5 would give a taxpayer a credit of 5 cents per gallon of gasoline or diesel produced at a qualifying newly constructed refinery and sold by that taxpayer to an unrelated buyer during the tax year. Production alone would not satisfy the stated requirements.
the refinery production credit for any taxable year is an amount equal to 5 cents per gallon of gasoline or diesel— (1) produced by the taxpayer at a qualified newly constructed refinery, and (2) sold by the taxpayer to an unrelated person during the taxable year.
For the production credit, a refinery would have to meet section 48F(d)'s qualified-facility definition. It must also have been put into service within 10 years of the date the gallon was produced, tying eligibility to the refinery's service date rather than a single nationwide expiration date.
the term qualified newly constructed refinery means a refinery— (1) which is a qualified facility (as defined in section 48F(d)), (2) which was placed in service within 10 years of the date a gallon of gasoline or diesel described in subsection (a) was produced.
Section 5 would include the production credit in the general business credit, the tax code's grouping of business tax credits. Its effective-date clause would apply the amendments to amounts paid or incurred after enactment.
(b) Credit included in general business credit Section 38 of such Code is amended— (1) in paragraph (40), by striking plus, (2) in paragraph (41), by striking the period and inserting , plus, and (3) by adding at the end the following new paragraph: (42) the refinery production credit determined under section 45BB(a).
The amendments made by this section shall apply to amounts paid or incurred after the date of the enactment of this Act.
Section 6 would change the existing special allowance for production property integral to qualifying new refinery construction. It would disregard a “before January 1, 2029” condition and two other existing provisions, section 168(n)(2)(A)(vii) and section 168(n)(2)(H). Their contents and the allowance's amount are not supplied.
Section 168(n)(2)of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph: (I) Special allowance made permanent for new refinery construction In the case of property integral to the new construction of a qualified facility described in section 48F(d)(1) (determined without regard to subparagraph (C) of such section)— (i) subparagraph (A) shall be applied— (I) in clause (v), without regard to before January 1, 2029, and (II) without regard to clause (vii), and (ii) this paragraph shall be applied without regard to subparagraph (H).
Although section 6 calls the allowance permanent, it would disregard only the construction-start condition in section 48F(d)(1)(C) when applying that facility definition. It does not remove section 48F(d)(1)(D)'s requirement that the refinery be put into service before January 1, 2037.
Special allowance made permanent for new refinery construction In the case of property integral to the new construction of a qualified facility described in section 48F(d)(1) (determined without regard to subparagraph (C) of such section)
(C) the construction of which begins after the date of the enactment of this section and before January 1, 2032, and (D) which is placed in service before January 1, 2037.
Section 6's amendments would apply to property whose construction begins after enactment.
The amendments made by this section shall apply to property the construction of which begins after the date of the enactment of this Act.
The supplied actions snapshot, updated October 5, 2026, records introduction in the House and referral to the House Committee on Ways and Means on September 24, 2026. That snapshot does not establish subsequent legislative action or enactment.
Source snapshot updated 2026-10-05T19:00:10Z. 2026-09-24: Referred to the House Committee on Ways and Means. 2026-09-24: Introduced in House
A closer look
Reviewed version: Introduced in House · 2026-09-24. These findings describe provisions and who may benefit; they are not judgments of waste, corruption, or motive.
This review covers the supplied bill text. “None identified” does not rule out provisions in later versions or accompanying reports and disclosures.
Provisions outside the bill’s main subject, or policy changes attached to appropriations.
None identified in the reviewed text
No provision unrelated to the bill's main subject was identified in the complete supplied introduced text. This conclusion does not establish absence in other versions or accompanying materials.
Spending directed to particular recipients or places outside ordinary competitive or formula-based allocation.
None identified in the reviewed text
No congressionally directed spending for particular recipients or places was identified in the complete supplied introduced text. This conclusion is limited to that version and does not establish formal earmark status or absence in accompanying materials.
Narrow exceptions, exemptions, or preferential treatment that warrant a closer look.
Findings to examine
The supplied introduced text contains industry-specific tax preferences and exceptions directly related to its main policy. Classification identifies selective treatment, not improper intent.
Taxpayers investing in qualifying new U.S. refineries would receive a 35 percent construction investment credit. This is a tax preference for a defined industrial activity, subject to construction and service deadlines.
the refinery construction investment credit for any taxable year is an amount equal to 35 percent of the qualified investment for such taxable year.
the term qualified facility means a facility— (A) which is a refinery located in the United States, (B) which is designed to serve the primary purpose of processing liquid fuel from crude oil or qualified fuels (as defined in section 45K(c)), or directly from shale or tar sands, (C) the construction of which begins after the date of the enactment of this section and before January 1, 2032, and (D) which is placed in service before January 1, 2037.
Producers at qualifying newly constructed refineries would receive a separate 5-cent-per-gallon tax preference for gasoline or diesel they produce and sell to unrelated buyers. Eligibility would depend on the refinery meeting section 48F(d) and the 10-year service-date condition.
the refinery production credit for any taxable year is an amount equal to 5 cents per gallon of gasoline or diesel— (1) produced by the taxpayer at a qualified newly constructed refinery, and (2) sold by the taxpayer to an unrelated person during the taxable year.
the term qualified newly constructed refinery means a refinery— (1) which is a qualified facility (as defined in section 48F(d)), (2) which was placed in service within 10 years of the date a gallon of gasoline or diesel described in subsection (a) was produced.
Property integral to qualifying new refinery construction would receive exceptions from specified production-property allowance conditions, including an existing January 1, 2029 cutoff. This is special treatment for refinery investment; the omitted existing law prevents quantifying its value.
In the case of property integral to the new construction of a qualified facility described in section 48F(d)(1) (determined without regard to subparagraph (C) of such section)— (i) subparagraph (A) shall be applied— (I) in clause (v), without regard to before January 1, 2029, and (II) without regard to clause (vii), and (ii) this paragraph shall be applied without regard to subparagraph (H).
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