Restoring Fuel Market Freedom Act of 2025

This bill, known as the "Restoring Fuel Market Freedom Act of 2025," aims to eliminate various tax credits within the Internal Revenue Code that support alternative fuels. Its primary purpose is to repeal financial incentives for the production and use of specific fuel types, thereby altering the existing tax landscape for these industries. Specifically, the bill targets the repeal of the alcohol fuels credit (Section 40), the biodiesels fuel credit (Section 40A), and the sustainable aviation fuel credit (Section 40B). It also seeks to abolish the clean fuel production credit (Section 45Z) and the alcohol fuel, biodiesel, and alternative fuel mixtures credit (Section 6426). These repeals would apply to fuels produced, sold, or used after the bill's enactment date, depending on the specific credit. To ensure consistency across tax law, the legislation includes extensive conforming amendments to various sections of the Internal Revenue Code of 1986. These amendments are necessary to remove references to the repealed credits and adjust related provisions, such as those concerning gross income, general business credits, and certain excise tax provisions. The bill also repeals expired provisions related to payments for certain fuels not used for taxable purposes, further streamlining the code.