Repeal of biodiesels fuel credit

(a) In general Subpart D of part IV of subchapter A of chapter 1 of subtitle A is amended by repealing section 40A (and by striking the item relating to such section in the table of sections for such subpart). (b) Conforming amendments (1) Section 25C(d)(3)(A) is further amended by inserting, as in effect on the day before the date of the enactment of the Restoring Fuel Market Freedom Act of 2025 after section 40A. (2) Section 30C(C)(1)(B)(ii)(I) is amended by inserting (as in effect on the day before the date of the enactment of the Restoring Fuel Market Freedom Act of 2025) after section 40A(d)(1). (3) Section 38(b) is further amended by striking paragraph (17). (4) Section 87 (as amended by section 2) is amended to read as follows: 87. Alcohol and biodiesel fuels credits Gross income includes the sustainable aviation fuel credit determined with respect to the taxpayer for the taxable year under section 40B(a).. (5) Section 196(c) is further amended by striking paragraph (11). (6) Section 4101(a)(1) is further amended by striking, every person producing or importing biodiesel (as defined in section 40A(d)(1)). (7) Section 4104(a)(1) is further amended— (A) by striking sections and inserting section, and (B) by striking and 40A,. (8) Section 6426 is further amended— (A) in subsection (c)(5), by striking also used in section 40A shall have the meaning given such term by section 40A and inserting also used in section 40A (as in effect on the day before the date of the enactment of the Restoring Fuel Market Freedom Act of 2025) shall have the meaning given such term by such section (as in effect on such date), and (B) in subsection (h), by striking 40A or. (9) Section 7704(d)(1)(E) is amended by inserting, as in effect on the day before the date of the enactment of the Restoring Fuel Market Freedom Act of 2025 after 40A(d)(1). (c) Effective date The amendments made by this section shall apply to fuels sold or used after the date of the enactment of this section.