Bills · S 1111
IN COMMITTEE· 119TH CONGRESS
Senate BillS 1111Taxation
A bill to amend the Internal Revenue Code of 1986 to allow for payments to certain individuals who dye fuel, and for other purposes.
INTRO MAR 25· LAST ACTION MAR 25
READING
3MIN
COSPONSORS
1
READER REACTIONS0 TOTAL
NO VOTES YET · BE THE FIRST
- Introduced only
LEGISLATIVE PROGRESS
STEP 2 / 8Introduced
In Committee
Reported
Passed Senate
Passed House
Conference
To President
Became Law
WHAT THE BILL DOES
AI-writtenVoters should care about this bill because it aims to make the federal fuel tax system fairer and more efficient for certain industries. Currently, federal excise taxes are collected on fuels at an early stage in the supply chain. However, many uses of diesel and kerosene, like for agriculture or heating, are supposed to be tax-exempt. To distinguish these, the fuel is dyed. This bill creates a clearer, more direct pathway for businesses that handle and dye this fuel to recover the tax they paid upfront on fuel that ultimately qualifies for an exemption.
If this bill becomes law, it could reduce the administrative burden and improve cash flow for fuel distributors, potentially lowering costs slightly for those who use dyed fuel for exempt purposes. If it doesn't become law, businesses would continue to rely on existing, potentially more complex or delayed, mechanisms to recover these taxes, which could add to operational costs and complexity in the fuel supply chain.
KEY PROVISIONS
5AI-extractedPROVISION 01
Establishes a new section in the Internal Revenue Code (Section 6434) to allow payments for certain dyed fuel.
This creates a specific legal mechanism for businesses to recover federal excise taxes paid on fuel that later qualifies as tax-exempt due to dyeing.
PROVISION 02
Allows a person to receive a payment equal to the federal excise tax previously paid (under Section 4081) on diesel fuel or kerosene that is then indelibly dyed and removed from a terminal for tax-exempt purposes.
This directly addresses the issue of tax recovery for fuel that transitions from taxable to tax-exempt status through the dyeing process.
PROVISION 03
Specifies that the payment will be made without interest.
This detail clarifies that the government will return the principal amount of the tax, but not any accrued interest, which impacts the financial implications for businesses.
PROVISION 04
Includes conforming amendments to other sections of the tax code to integrate this new payment provision.
These changes ensure that the new payment system works correctly within the broader framework of federal fuel tax laws and existing penalty provisions.
PROVISION 05
Sets an effective date for the changes to apply to fuel removed 180 days after the bill becomes law.
This provides a clear timeline for businesses and the IRS to prepare for the new payment process.
SPONSORSHIP
1 + 1
R· Wisconsin
YRS IN OFFICE
15
BILLS LED
22
COSPONSOR BREAKDOWNBIPARTISAN · 0%
DEM 1 REP 0 IND 0
ACTION TIMELINE
2 EVENTSMAR 25
Introduced in Senate
MAR 25
Read twice and referred to the Committee on Finance.
BILL INFO
TypeSenate Bill
NumberS 1111
Congress119th
StatusIn Committee
IntroducedMar 25, 2025
Last actionMar 25, 2025
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IN COMMITTEE· 119TH CONGRESS · FINANCE COMMITTEE · INTRODUCED MAR 25, 2025
Senate BillS 1111Taxation
A bill to amend the Internal Revenue Code of 1986 to allow for payments to certain individuals who dye fuel, and for other purposes.
INTRODUCED MAR 25, 2025· LAST ACTION MAR 25, 2025
PASSAGE CHANCES
—%
READING
3 min
COSPONSORS
1
COMPLEXITY
Moderate
