House Bill
David G. Valadao
Representative
Cosponsors
4
Policy Area
Summary
This bill would get rid of various tax credits and incentives for alternative fuels like alcohol, biodiesel, and sustainable aviation fuel. It would also remove the requirement to pay taxes on some of these fuels.
Latest Action
Referred to the House Committee on Ways and Means.
Plain-English explanation of this bill
This bill would get rid of various tax credits and incentives for alternative fuels like alcohol, biodiesel, and sustainable aviation fuel. It would also remove the requirement to pay taxes on some of these fuels.
Last updated: 12/29/2025
Congressional Research Service summary
<p> <strong>Restoring Fuel Market Freedom Act of 2023 </strong></p> <p>This bill repeals various alternative fuels tax credits, including the tax credits for (1) alcohol used as fuel; (2) biodiesel and renewable diesel used as fuel; (3) sustainable aviation fuel; (4) clean fuel production; and (5) alcohol fuel, biodiesel, and alternative fuel mixtures. It also repeals the inclusion in gross income of alcohol and biodiesel fuels and payments for certain fuels not used for taxable purposes.</p>
Main provisions of the bill
Potential effects on citizens and communities
If this bill becomes law, it would likely make alternative fuels more expensive and less competitive compared to traditional fossil fuels. This could slow the adoption of greener energy sources and hurt businesses and consumers who rely on or produce alternative fuels. The overall effect would be to maintain the status quo in the fuel market and make it harder to transition to more environmentally-friendly options.
Primary Policy Area
Jurisdiction Level
federal
Congressional Session
119th Congress
Citation Reference
2902, 119th Congress (2025). "SOAR Act of 2025". Source: Voter's Right Platform. https://votersright.org/bills/118-hr-2902