[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 4032 Introduced in Senate (IS)]

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119th CONGRESS
  2d Session
                                S. 4032

 To amend the Internal Revenue Code of 1986 to provide a gasoline tax 
                                holiday.


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                   IN THE SENATE OF THE UNITED STATES

                             March 9, 2026

  Mr. Kelly (for himself and Mr. Blumenthal) introduced the following 
  bill; which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to provide a gasoline tax 
                                holiday.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Gas Prices Relief Act of 2026''.

SEC. 2. 2026 GASOLINE TAX HOLIDAY.

    (a) In General.--In the case of gasoline removed, entered, or sold 
on or after the date of the enactment of this Act and before October 1, 
2026--
            (1) the rate of tax under section 4081(a)(2)(A)(i) of the 
        Internal Revenue Code of 1986 shall be zero, and
            (2) the Leaking Underground Storage Tank Trust Fund 
        financing rate under section 4081(a)(2)(B) of such Code shall 
        not apply to gasoline to which the rate under paragraph (1) 
        applies.
    (b) Transfers to Trust Fund.--
            (1) In general.--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 subsection (a).
            (2) Coordination rules.--
                    (A) 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.
                    (B) 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.
    (c) Benefits of Tax Reduction Should Be Passed on to Consumers.--
            (1) It is the policy of Congress that--
                    (A) consumers immediately receive the benefit of 
                the reduction in taxes resulting from the application 
                of subsection (a),
                    (B) transportation motor fuels producers and other 
                dealers take such actions as necessary to reduce 
                transportation motor fuels prices to reflect such 
                reduction, and
                    (C) transportation motor fuels producers and other 
                dealers that fail to reduce transportation motor fuels 
                prices to reflect such reduction shall be subject to 
                monetary penalties which are not less than the amount 
                of the reduction in taxes which should have been passed 
                on to consumers.
            (2) Enforcement.--The Secretary of the Treasury shall 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.
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