HB2736 amends the Illinois Motor Fuel Tax Law to create a new definition of “marine fuel” and exempt that fuel from the state motor fuel tax beginning July 1, 2025. The bill defines marine fuel as motor fuel specially formulated for propulsion of watercraft. It also makes the exemption part of Section 2 of the Motor Fuel Tax Law by adding a new subsection stating that marine fuel is not subject to the tax imposed under the Act.
The measure is narrow in scope and does not change the general tax structure for highway motor fuel, diesel, liquefied natural gas, propane, aviation fuel, or kerosene. Its practical effect would be to remove the state motor fuel tax from qualifying fuel sold for use in watercraft, which would reduce fuel costs for marine operators and potentially lower state fuel tax revenue associated with waterborne transportation and recreation.
Because there were no committee transcripts or recorded votes provided, there is no documented debate or formal sentiment history in the materials. Based on the bill text alone, the proposal appears to be a targeted tax relief measure for the boating and marine fuel market rather than a broad tax policy change.
No specific points of contention are documented in the available context. Any likely debate would center on the revenue impact to the Motor Fuel Tax Fund versus the benefit to boat owners, marina operators, and other marine fuel users, as well as how broadly “marine fuel” would be interpreted and administered by the Department of Revenue.
Impact
HB2736 would amend the Motor Fuel Tax Law by adding a statutory definition of “marine fuel” and exempting that fuel from the state motor fuel tax on and after July 1, 2025. This would create a new tax exclusion for fuel specially formulated for watercraft propulsion while leaving the rest of the motor fuel tax framework intact. The bill would primarily affect marine fuel sellers, marina operators, boat owners, and other watercraft users, and would likely reduce state fuel tax collections tied to marine fuel sales.
Sentiment
No committee discussion or vote history is available in the provided materials, so there is no recorded legislative sentiment to summarize. The bill’s text suggests a pro-relief, pro-boating policy approach, with the likely support coming from marine and recreational boating interests. Any opposition would most likely come from fiscal stakeholders concerned about reduced revenue or from those questioning whether a tax exemption for marine fuel is warranted.
Contention
The main potential contention is fiscal: exempting marine fuel from the motor fuel tax would reduce revenue to the state, which could concern budget-focused lawmakers or agencies. Another possible issue is administration and enforcement, including how “motor fuel specially formulated to be used in the propulsion of watercraft” would be verified at the retail level and whether the exemption could create classification disputes between marine fuel and other taxed fuels. No specific objections or supporters are identified in the available record.