Proposed Gas Tax Relief and Oil Industry Tax Credit Suspension Act
April 30, 2026
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Where This Stands
Currently in_committee. The next step in the legislative lifecycle is Floor Vote.
Version history
Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.
View official text →The Frame
If passed, this bill would trigger a reduction in federal fuel taxes for consumers when gas prices are high, while simultaneously removing certain tax breaks for oil and gas companies to ensure the Highway Trust Fund remains funded.
Potentially affected actors named in the source documents. Mention is not a position.
Gasoline consumers
Consumers would pay lower federal fuel taxes when the national average price of gasoline exceeds $3.99 per gallon.
Oil and gas companies
These companies would be unable to claim specific tax credits and deductions during months when the national average price of gasoline exceeds $3.99 per gallon.
Current stage: in_committee.
Floor Vote.
Summary
Why It Matters
If passed, this bill would trigger a reduction in federal fuel taxes for consumers when gas prices are high, while simultaneously removing certain tax breaks for oil and gas companies to ensure the Highway Trust Fund remains funded.
Key Facts
- The bill reduces federal fuel taxes by 1 cent for every 1 cent that the national average gasoline price exceeds $3.99 per gallon.
- The tax reduction applies only during months where the national average price of gasoline is above $3.99 per gallon.
- The Secretary of the Treasury must transfer money from the general fund to the Highway Trust Fund and the Leaking Underground Storage Tank Trust Fund to replace revenue lost from the tax reduction.
- Oil and gas companies are prohibited from claiming the 'Intangible Drilling Costs' deduction during any month where the national average gas price exceeds $3.99.
- Oil and gas companies are prohibited from claiming the 'Enhanced Oil Recovery Credit' during any month where the national average gas price exceeds $3.99.
- Oil and gas companies are prohibited from claiming the 'Marginal Well Credit' for production occurring during any month where the national average gas price exceeds $3.99.
- The provisions of this bill apply to taxable years beginning after December 31, 2025.
Frequently Asked Questions
Will my gas taxes go down automatically if prices are high?
How will the government pay for the lost tax revenue?
When does this law take effect?
News Coverage
Sponsors
Discoveries
Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.
Conditional Tax Policy
The bill introduces a dynamic tax policy where federal tax rates and corporate deductions are tied directly to the fluctuating national average price of a commodity (gasoline).
Connected Entities
Analysis Score
0–100- Significance85How much this matters to a regular citizen
- Controversy75Intensity of disagreement among stakeholders
- Entertainment20Compellingness for a non-policy-wonk reader
- Buzz60Current news / social attention level
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