To amend the Internal Revenue Code of 1986 to establish the motor fuel deduction.
- Sponsor
- Rep. Mast, Brian J. [R-FL-21]
- Committees
- Ways and Means Committee (primary)
- Last action
- Oct 22, 2026
Bottom line
This bill establishes a new above-the-line tax deduction for individuals' personal motor fuel and electric vehicle charging expenses, aiming to reduce the tax burden associated with transportation costs for all taxpayers.
What it actually does
This bill amends the Internal Revenue Code of 1986 to create a new tax deduction for individuals, allowing them to subtract qualified motor vehicle fuel expenses from their taxable income. These expenses include amounts paid for gasoline or diesel fuel for personal use in a motor vehicle, as well as costs to recharge an electric motor vehicle for personal use. Crucially, the deduction is available to all taxpayers, including those who do not itemize deductions.
Proponents argue
Proponents would argue that this deduction provides essential tax relief to individuals and families grappling with high transportation costs, making daily commutes, travel, and essential errands more affordable. They would emphasize its broad applicability, benefiting owners of both traditional gasoline/diesel vehicles and electric vehicles, thereby offering universal support for personal mobility.
Opponents contend
Opponents might contend that this deduction could significantly reduce federal tax revenue, potentially exacerbating the national deficit, without clear evidence of broad economic stimulus. They may also argue that it disproportionately benefits wealthier individuals who tend to drive more or own multiple vehicles, or that it could inadvertently incentivize increased fuel consumption, running counter to environmental goals.
The bill is exceptionally short and clear, making it very accessible for any reader to understand its core provisions quickly.
Section 1(a), inserting new Section 226 into the Internal Revenue Code.
Establishment of Motor Fuel Deduction
This provision amends the Internal Revenue Code to allow individual taxpayers to deduct the amount they pay for gasoline or diesel fuel for personal use in a motor vehicle, or the cost to recharge an electric motor vehicle for personal use, from their taxable income. This deduction applies to expenses incurred after December 31, 2026, providing direct tax relief for transportation costs.
Supporters argue
Supporters argue this deduction directly addresses the financial burden of transportation costs, providing tangible relief to millions of Americans who rely on personal vehicles for work, errands, and family needs. They highlight its broad applicability, benefiting a wide range of taxpayers regardless of their vehicle's fuel type.
Critics contend
Critics might contend that this deduction primarily benefits those who drive more, which could include wealthier individuals or those in suburban/rural areas, potentially creating an inequitable distribution of tax benefits. They may also argue it could disincentivize fuel efficiency or public transport use, conflicting with broader policy goals.
Tradeoffs
The bill balances the desire to provide broad tax relief for transportation costs against concerns about significant federal revenue loss and potential equity issues regarding who benefits most from a fuel consumption-based deduction.
Section 1(b), amending Section 63(b) of the Code.
Deduction Allowed to Non-Itemizers
This provision ensures that the newly established motor fuel deduction can be claimed by all individual taxpayers, including the majority who choose to take the standard deduction rather than itemizing. By adding it to Section 63(b), it becomes an 'above-the-line' deduction, meaning it reduces adjusted gross income (AGI) before other deductions are considered.