This bill, known as the "CLEAR Skies Act," establishes a new tax credit under the Internal Revenue Code to incentivize the domestic production of aviation gasoline free of tetra-ethyl-lead . This credit, effective for fuel sold between 2026 and 2030, aims to promote cleaner aviation fuels by offering a per-gallon incentive that decreases annually, starting at $1.25 in 2026 and reaching $1.05 by 2030. To qualify, the aviation gasoline must be produced in the United States, meet specific aviation fuel standards, and be certified as lead-free. Producers must register with the Secretary to claim this credit, which is designed to encourage the transition away from leaded fuels. Additionally, the bill mandates a study by the Comptroller General to assess the unleaded aviation gas market, including price differentials and the credit's effectiveness in passing cost savings to consumers. A report detailing these findings and recommendations must be submitted to Congress within one year of the bill's enactment.
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Timeline
Introduced in House
Referred to the House Committee on Ways and Means.
Introduced in House
Referred to the House Committee on Ways and Means.
Taxation
CLEAR Skies Act
USA119th CongressHR-2932| House
| Updated: 4/17/2025
This bill, known as the "CLEAR Skies Act," establishes a new tax credit under the Internal Revenue Code to incentivize the domestic production of aviation gasoline free of tetra-ethyl-lead . This credit, effective for fuel sold between 2026 and 2030, aims to promote cleaner aviation fuels by offering a per-gallon incentive that decreases annually, starting at $1.25 in 2026 and reaching $1.05 by 2030. To qualify, the aviation gasoline must be produced in the United States, meet specific aviation fuel standards, and be certified as lead-free. Producers must register with the Secretary to claim this credit, which is designed to encourage the transition away from leaded fuels. Additionally, the bill mandates a study by the Comptroller General to assess the unleaded aviation gas market, including price differentials and the credit's effectiveness in passing cost savings to consumers. A report detailing these findings and recommendations must be submitted to Congress within one year of the bill's enactment.