To amend the Internal Revenue Code of 1986 to provide refunds with respect to certain dyed fuels that are exempt from tax and with respect to which tax was previously paid.
Summary
HB2146 would amend the Internal Revenue Code to create a new refund mechanism for certain dyed diesel fuel or kerosene that is exempt from federal fuel tax but on which tax was previously paid. The bill adds a new section to the tax code allowing the Secretary of the Treasury to pay a refund to a person who can show that eligible indelibly dyed diesel fuel or kerosene was removed from a terminal and that the fuel had already been taxed under section 4081, but is exempt under section 4082(a).
The measure also makes conforming changes to related Internal Revenue Code provisions governing fuel-tax refunds, administrative treatment, and penalties, and it specifies that these payments are to be treated like other refundable fuel-tax credits for purposes of federal payment rules. The refund authority would apply only to fuel removed on or after 180 days after enactment, giving the IRS and affected taxpayers time to adjust to the new process.
Impact
The bill would expand federal excise tax refund eligibility for certain dyed fuel transactions by adding a new refund provision in chapter 65 of the Internal Revenue Code. It would affect fuel suppliers, terminal operators, and other taxpayers who may have paid tax on diesel fuel or kerosene that later qualifies as exempt dyed fuel, while also updating cross-references and penalty provisions to incorporate the new refund section. The practical effect is to reduce overpayment of fuel taxes in specified cases and create a clearer statutory path for recovering those amounts.
Sentiment
There is no recorded committee debate or vote history in the materials provided, so overall sentiment must be inferred from sponsorship and bill design. The bill was introduced with bipartisan Wisconsin support, including members from both parties, which suggests a generally favorable or technical consensus around correcting fuel-tax refund treatment. The absence of opposition statements or recorded votes indicates no documented controversy at this stage.
Contention
No specific points of contention are documented in the provided transcript or vote history. Potential issues, based on the text alone, could include administrative verification burdens for proving eligibility, the fiscal impact of additional refunds, and whether the refund rule could create compliance complexity for fuel distributors and the IRS. However, no named stakeholders or opposing arguments are identified in the available materials.
To amend the Internal Revenue Code of 1986 to extend the deduction for film and television productions and to make certain changes with respect to the calculation of such deduction.
To amend the Internal Revenue Code of 1986 to establish a refundable tax credit for individuals for amounts paid for gas and electricity for primary residences.