HR7919

HR7919, titled the 'Gas Prices Relief Act of 2026,' was introduced in the House of Representatives by Rep. Pappas on March 12, 2026, and subsequently referred to the House Committee on Ways and Means. The bill proposes to amend the Internal Revenue Code of 1986 to implement a gasoline tax holiday, setting the rate of tax under section 4081(a)(2)(A)(i) to zero and waiving the Leaking Underground Storage Tank Trust Fund financing rate for gasoline removed, entered, or sold between the date of enactment and October 1, 2026. This is an early-stage bill, and its referral to committee indicates the initial step in the legislative process. The bill specifies that the Secretary of the Treasury would transfer amounts from the general fund to the Highway Trust Fund and the Leaking Underground Storage Tank Trust Fund to compensate for the reduction in tax revenue. This mechanism ensures that the trust funds, which are critical for infrastructure projects, are not negatively impacted by the tax holiday. The bill also states that it is the policy of Congress for consumers to immediately receive the benefit of the tax reduction, and it includes provisions for monetary penalties on producers and dealers who fail to pass on these savings. Structural winners, if this bill were to pass and the tax reduction were fully passed to consumers, would include consumers of gasoline. Companies involved in the production, refining, and distribution of petroleum products, such as Exxon Mobil ($XOM), Chevron ($CVX), Phillips 66 ($PSX), Marathon Petroleum ($MPC), Kinder Morgan ($KMI), and Energy Transfer ($ET), could see increased demand due to lower prices, assuming the tax savings are passed through. The recent Presidential Determination on Domestic Petroleum Production, Refining, and Logistics Capacity, issued on April 20, 2026, aims to stimulate investment in domestic petroleum infrastructure. This executive action aligns with the bill's intent to potentially lower gas prices by increasing supply and efficiency, thereby amplifying the potential impact on the energy sector by encouraging both supply-side expansion and demand-side stimulation through price reduction. As of April 22, 2026, the bill is in the early stages of the legislative process, having only been referred to committee. For the bill to advance, it would need to be considered and approved by the House Committee on Ways and Means, then passed by the full House, and subsequently undergo a similar process in the Senate before potentially being signed into law by the President. The short duration of the proposed tax holiday (until October 1, 2026) means that legislative action would need to be swift for the bill to have a significant impact within the proposed timeframe.