HR 8772
Diesel Prices Relief Act of 2026
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Bill overview
This bill, the Diesel Prices Relief Act of 2026, temporarily suspends the federal tax on diesel fuel for a period of one year, starting on January 1, 2027. It aims to provide immediate relief to consumers by reducing the cost of diesel fuel. The bill also outlines a mechanism to transfer funds from the general fund to the Highway Trust Fund and the Leaking Underground Storage Tank Trust Fund to offset the lost tax revenue. Finally, it mandates that the savings from this tax holiday be passed on to consumers in the form of lower fuel prices.
Key provisions
- Suspends the federal diesel fuel tax for 2027.
- Sets the tax rate for diesel fuel to zero for the specified period.
- Waives the Leaking Underground Storage Tank Trust Fund financing rate for diesel fuel during the tax holiday.
- Requires the Treasury Secretary to transfer funds to the Highway Trust Fund and Leaking Underground Storage Tank Trust Fund.
- Mandates that fuel price reductions be passed on to consumers.
- Authorizes the Treasury Secretary to enforce consumer benefits.
Who is affected
- Consumers
- Diesel fuel producers and dealers
- The Highway Trust Fund
- The Leaking Underground Storage Tank Trust Fund
Notable changes
- Temporarily eliminates the federal diesel fuel tax.
- Redirects funds from trust funds to offset revenue loss.
Fiscal impact
Sponsors
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119th CONGRESS — 2d Session
H. R. 8772
IN THE HOUSE OF REPRESENTATIVES
A BILL
To provide a diesel fuel tax holiday.
This Act may be cited as the Diesel Prices Relief Act of 2026
.
In the case of diesel fuel removed, entered, or sold on or after the date of the enactment of this Act and before January 1, 2027—
the rate of tax under section 4081(a)(2)(A)(iii) of the Internal Revenue Code of 1986 shall be zero with respect to diesel fuel (other than kerosene), and
the Leaking Underground Storage Tank Trust Fund financing rate under section 4081(a)(2)(B) of such Code shall not apply to diesel fuel to which the rate under paragraph (1) applies.
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 subsection (a).
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.
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.
It is the policy of Congress that—
consumers immediately receive the benefit of the reduction in taxes resulting from the application of subsection (a), and
transportation motor fuels producers and other dealers take such actions as necessary to reduce transportation motor fuels prices to reflect such reduction.
The Secretary of the Treasury (or the Secretary’s delegate) may use all applicable authorities to ensure that the benefit of the reduction in taxes resulting from the application of subsection (a) is received by consumers.