119-hr2932

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2932 Introduced in House

    (IH) ]

<DOC>

119th CONGRESS
 1st Session
 H. R. 2932

 To amend the Internal Revenue Code of 1986 to establish a tax credit 
 for the production of aviation gasoline that is free of tetra-ethyl-
 lead.

_______________________________________________________________________

 IN THE HOUSE OF REPRESENTATIVES

 April 17, 2025

Mr. Garcia of California (for himself and Mr. Obernolte) introduced the 
 following bill; which was referred to the Committee on Ways and Means

_______________________________________________________________________

 A BILL

 To amend the Internal Revenue Code of 1986 to establish a tax credit 
 for the production of aviation gasoline that is free of tetra-ethyl-
 lead.

 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 ``Cutting Lead Exposure and Aviation 
Relief Skies Act'' or the ``CLEAR Skies Act''.

SEC. 2. AVIATION GASOLINE PRODUCTION CREDIT.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by adding at the end 
the following new section:

``

SEC. 45BB. AVIATION GASOLINE PRODUCTION CREDIT.

 ``

    (a) Amount of Credit.--
 ``

    (1) In general.--For purposes of 

section 38, the aviation 
 gasoline production credit determined under this section for 
 the taxable year is an amount equal to the product of--
 ``
        (A) the number of gallons of qualified aviation 
 gasoline produced by the taxpayer and sold by the 
 taxpayer in the manner described in paragraph

    (5) during the taxable year, multiplied by
 ``
        (B) the applicable amount with respect to such 
 gasoline.
 ``

    (2) Applicable amount.--The applicable amount under this 
 paragraph is equal to--
 ``
        (A) in the case of qualified aviation gasoline 
 sold during calendar year 2026, $1.25,
 ``
        (B) in the case of qualified aviation gasoline 
 sold during calendar year 2027, $1.20,
 ``
            (C) in the case of qualified aviation gasoline 
 sold during calendar year 2028, $1.15,
 ``
            (D) in the case of qualified aviation gasoline 
 sold during calendar year 2029, $1.10, and
 ``
        (E) in the case of qualified aviation gasoline 
 sold during calendar year 2030, $1.05.
 ``

    (3) Qualified aviation gasoline.--For purposes of this 
 section, the term `qualified aviation gasoline' means aviation 
 gasoline--
 ``
        (A) which is--
 ``
            (i) defined in 

section 436.101 of title 
 10, Code of Federal Regulations,
 ``
            (ii) free from tetra-ethyl-lead, and
 ``
            (iii) produced by the taxpayer in the 
 United States,
 ``
        (B) which meets the requirements of any aviation 
 fuel standards promulgated pursuant to 

section 44714 of 
 title 49, United States Code, and
 ``
            (C) the transfer of which to the fuel tank of an 
 aircraft occurs in the United States.
 ``

    (4) Sale.--For purposes of paragraph

    (1) , the qualified 
 aviation gasoline is sold in a manner described in this 
 paragraph if such gasoline is sold by the taxpayer to an 
 unrelated person--
 ``
        (A) for use by such person in a trade or 
 business, or
 ``
        (B) who sells such fuel at retail to another 
 person and places such fuel in the fuel tank of such 
 other person.
 ``

    (b) Registration of Qualified Aviation Gasoline Producers.--No 
credit shall be allowed under this section with respect to any aviation 
gasoline unless the producer of such fuel--
 ``

    (1) is registered with the Secretary under 

section 4101, 
 and
 ``

    (2) provides certification (in such form or manner as the 
 Secretary shall prescribe after consultation with the Secretary 
 of Transportation) demonstrating that such gasoline is 
 qualified aviation gasoline.
 ``
            (c) Regulations and Guidance.--Not later than 180 days after the 
date of the enactment of this section, the Secretary shall, after 
consultation with the Secretary of Transportation, prescribe such 
regulations and guidance as are necessary to carry out the purposes of 
this section.
 ``
            (d) Termination.--This section shall not apply to any sale after 
December 31, 2030.''.

    (b) Credit Made Part of General Business Credit.--

Section 38

    (b) of 
such Code is amended by striking ``plus'' at the end of paragraph

    (40) , 
by striking the period at the end of paragraph

    (41) and inserting ``, 
plus'', and by inserting after paragraph

    (41) the following new 
paragraph:
 ``

    (42) the aviation gasoline production credit determined 
 under 

section 45BB.''.
            (c) Certification of Producers.--

Section 4101

    (a)

    (1) of such Code is 
amended by striking ``and every person producing second generation 
biofuel (as defined in 

section 40

    (b)

    (6)
        (E) )'' and inserting ``every 
person producing second generation biofuel (as defined in 

section 40

    (b)

    (6)
        (E) ), and every person producing qualified aviation gasoline 
(as defined in 

section 45BB

    (a)

    (4) )''.
            (d) Qualified Aviation Gasoline Taxed as Aviation Gasoline.--

Section 4081

    (a)

    (2)
        (A)
            (ii) of such Code is amended by inserting 
``(including qualified aviation gasoline as defined in 

section 45BB

    (a)

    (4) )'' after ``aviation gasoline''.

    (e) Clerical Amendment.--The table of sections for subpart D of 
subchapter A of chapter 1 of such Code is amended by inserting after 
the item relating to 

section 45AA the following new item:

``

Sec. 45BB. Aviation gasoline credit.''.

    (f) Effective Date.--The amendments made by this section shall 
apply to fuel sold or used after December 31, 2025.

SEC. 3. GAO STUDY.

    (a) Study.--The Comptroller General of the United States shall 
carry out a study relating to the price of unleaded aviation gas, 
including--

    (1) the price differential of leaded aviation gas at the 
 consumer point of sale as compared with unleaded aviation gas, 
 including unleaded aviation gas at different octane levels,

    (2) the major drivers of the price differential between 
 leaded and unleaded gas, including research and development, 
 refining, transportation and delivery and storage,

    (3) whether the aviation gasoline credit under 

section 45BB 
 of the Internal Revenue Code of 1986 (as added by 

section 1) 
 results in cost savings that are passed along to the end-user 
 consumer,

    (4) recommendations, if any, for changes to such credit to 
 ensure the highest amount of cost savings is passed along to 
 the end-user consumer, and

    (5) the amount and percentage of unleaded aviation gas in 
 the overall aviation gas market and future market projections 
 for such amount and percentage.

    (b) Report.--Not later than one year after the date of the 
enactment of this Act, the Comptroller General of the United States 
shall issue a report to Congress describing the findings and 
determinations made in carrying out the study required under subsection

    (a) .
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