119-s1111

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 1111 Introduced in Senate

    (IS) ]

<DOC>

119th CONGRESS
 1st Session
 S. 1111

 To amend the Internal Revenue Code of 1986 to allow for payments to 
 certain individuals who dye fuel, and for other purposes.

_______________________________________________________________________

 IN THE SENATE OF THE UNITED STATES

 March 25, 2025

 Mr. Johnson (for himself and Ms. Baldwin) 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 allow for payments to 
 certain individuals who dye fuel, and for other purposes.

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

SECTION 1. PAYMENT TO CERTAIN INDIVIDUALS WHO DYE FUEL.

    (a) In General.--Subchapter B of chapter 65 of the Internal Revenue 
Code of 1986 is amended by adding at the end the following new section:

``

SEC. 6434. DYED FUEL.

 ``

    (a) In General.--If a person establishes to the satisfaction of 
the Secretary that such person meets the requirements of subsection

    (b) with respect to diesel fuel or kerosene, then the Secretary shall pay 
to such person an amount (without interest) equal to the tax described 
in subsection

    (b)

    (2)
        (A) with respect to such diesel fuel or kerosene.
 ``

    (b) Requirements.--
 ``

    (1) In general.--A person meets the requirements of this 
 subsection with respect to diesel fuel or kerosene if such 
 person removes from a terminal eligible indelibly dyed diesel 
 fuel or kerosene.
 ``

    (2) Eligible indelibly dyed diesel fuel or kerosene 
 defined.--The term `eligible indelibly dyed diesel fuel or 
 kerosene' means diesel fuel or kerosene--
 ``
        (A) with respect to which a tax under 

section 4081 was previously paid (and not credited or 
 refunded), and
 ``
        (B) which is exempt from taxation under 

section 4082

    (a) .
 ``
            (c) Cross Reference.--For civil penalty for excessive claims 
under this section, see 

section 6675.''.

    (b) Conforming Amendments.--

    (1) Section 6206 of the Internal Revenue Code of 1986 is 
 amended--
        (A) by striking ``or 6427'' each place it appears 
 and inserting ``6427, or 6434''; and
        (B) by striking ``6420 and 6421'' and inserting 
 ``6420, 6421, and 6434''.

    (2) Section 6430 of such Code is amended--
        (A) by striking ``or'' at the end of paragraph

    (2) , 
 by striking the period at the end of paragraph

    (3) and 
 inserting ``, or'', and by adding at the end the 
 following new paragraph:
 ``

    (4) which are removed as eligible indelibly dyed diesel 
 fuel or kerosene under 

section 6434.''.

    (3) Section 6675 of such Code is amended--
        (A) in subsection

    (a) , by striking ``or 6427 
 (relating to fuels not used for taxable purposes)'' and 
 inserting ``6427 (relating to fuels not used for 
 taxable purposes), or 6434 (relating to eligible 
 indelibly dyed fuel)''; and
        (B) in subsection

    (b)

    (1) , by striking ``6421, or 
 6427,'' and inserting ``6421, 6427, or 6434,''.

    (4) The table of sections for subchapter B of chapter 65 of 
 such Code is amended by adding at the end the following new 
 item:

``

Sec. 6434. Dyed fuel.''.
            (c) Effective Date.--The amendments made by this section shall 
apply to eligible indelibly dyed diesel fuel or kerosene removed on or 
after the date that is 180 days after the date of the enactment of this 
section.
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