Bill > S173

This bill, called the Fueling Alternative Transportation with a Carbon Aviation Tax Act of 2025, increases excise taxes on fuel used by private jets and establishes a new Clean Communities Trust Fund. The legislation significantly raises the tax rate on aviation fuel, with commercial aviation taxed at 4.3 cents per gallon and non-commercial aviation (primarily private jets) taxed at 35.9 cents per gallon plus an additional $1.641 per gallon. This tax increase will be adjusted annually for inflation starting in 2027. The bill includes provisions for refunds or credits in special cases such as scientific research, natural disaster evacuations, or medical emergencies, with these exceptions expiring on January 1, 2028. A key feature of the bill is the creation of a new trust fund that will use the additional tax revenue to support environmental and community initiatives, including air quality monitoring, public transit infrastructure, and grants specifically targeting disadvantaged communities. At least 50% of the fund's expenditures must be directed to these communities, with priority given to areas disproportionately impacted by air pollution. The bill defines disadvantaged communities as those with significant low-income populations experiencing higher environmental and health risks. The new tax rates and trust fund provisions will take effect on January 1, 2026.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/173/all-info