H.R. 8572: Gas Prices Relief Act of 2026

The Gas Prices Relief Act of 2026 is a proposed piece of legislation aimed at providing temporary relief from gasoline taxes. Here’s a breakdown of what the bill entails:

Short Title

The bill is referred to as the "Gas Prices Relief Act of 2026."

Gasoline Tax Holiday

This section outlines a suspension of certain gasoline taxes:

• Effective Period: The tax rate on gasoline will be set to zero for gasoline removed, entered, or sold from the date the bill is enacted until January 1, 2027.
• Specific Taxes Affected:
  • The primary tax under section 4081(a)(2)(A)(i) of the Internal Revenue Code will be eliminated, meaning no federal tax will be applied to gasoline during this period.
  • The fee that funds the Leaking Underground Storage Tank Trust Fund, under section 4081(a)(2), will also not apply to the gasoline affected by this tax holiday.

Transfers to Trust Funds

Even though the federal gasoline tax will not be collected during this period, the bill ensures that the funds typically generated will still support specific projects:

• Transfer of Funds: The Secretary of the Treasury will transfer amounts equal to the lost tax revenue from the general fund to both the Highway Trust Fund and the Leaking Underground Storage Tank Trust Fund to maintain necessary funding for infrastructure and safety programs.
• Trust Fund Adjustments: The transferred funds will be treated as if they were revenues from taxes collected, ensuring that both the Highway Trust Fund and the Leaking Underground Storage Tank Trust Fund continue to receive adequate support despite the tax holiday.

Consumer Benefits

This section emphasizes that consumers should see the benefits of the tax reduction:

• Policy Intent: It is the intent of Congress that the savings from the tax reductions be passed on to consumers immediately. This means that gas prices should decrease as a direct result of the elimination of the tax.
• Producer Responsibilities: Gasoline producers and dealers are encouraged to take necessary actions to ensure that gas prices reflect these tax savings.
• Enforcement Authority: The Secretary of the Treasury has the authority to ensure compliance, taking appropriate actions to make sure consumers benefit from the tax holiday.

Relevant Companies

• CVX - Chevron Corporation: A significant player in the fuel industry, may see fluctuations in sales and market behavior during the gasoline tax holiday.
• XOM - Exxon Mobil Corporation: Another major fuel supplier, which could adjust pricing strategies based on consumer demand resulting from the tax changes.