Exemption from excise tax on alternative motorboat fuels extended to include certain vessels serving only one coast

(a) In general Section 4041(g) of the Internal Revenue Code of 1986 is amended by adding at the end the following new sentence: For purposes of subsection (a)(2), the exemption under paragraph (1) shall also apply to fuel sold for use or used by a vessel which is both described in section 4042(c)(1) and actually engaged in trade between the Atlantic or Pacific ports of the United States (including any territory or possession of the United States).. (b) Effective date The amendment made by this section shall apply to fuel sold for use or used after December 31, 2025.