An Act amending Title 75 (Vehicles) of the Pennsylvania Consolidated Statutes, providing for consumer diesel fuel tax relief and for Commonwealth indebtedness.

PRINTER'S NO. 1631
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 1265
Session of
2026
INTRODUCED BY BOSCOLA, APRIL 23, 2026
REFERRED TO TRANSPORTATION, APRIL 23, 2026
AN ACT
Amending Title 75 (Vehicles) of the Pennsylvania Consolidated
Statutes, providing for consumer diesel fuel tax relief and
for Commonwealth indebtedness.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Title 75 of the Pennsylvania Consolidated
Statutes is amended by adding a chapter to read:
CHAPTER 90A
CONSUMER DIESEL FUEL TAX RELIEF
Sec.
90A01. Scope of chapter.
90A02. Definitions.
90A03. Consumer diesel fuel tax relief.
90A04. Commonwealth indebtedness.
§ 90A01. Scope of chapter.
This chapter relates to consumer diesel fuel tax relief.
§ 90A02. Definitions.
The following words and phrases when used in this chapter
shall have the meanings given to them in this section unless the
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context clearly indicates otherwise:
"Capital Facilities Debt Enabling Act." The act of February
9, 1999 (P.L.1, No.1), known as the Capital Facilities Debt
Enabling Act.
"Capital project." A capital project that:
(1) is specifically itemized in accordance with the
Capital Facilities Debt Enabling Act pursuant to section 7(a)
(4) of Article VIII of the Constitution of Pennsylvania; and
(2) is an infrastructure project for highway or bridge
maintenance or construction.
§ 90A03. Consumer diesel fuel tax relief.
(a) Reduction.--Notwithstanding Chapters 90 (relating to
liquid fuels and fuels tax) and 95 (relating to taxes for
highway maintenance and construction), the tax imposed under
section 9004(b) (relating to imposition of tax, exemptions and
deductions) on diesel fuel, as defined in section 9002 (relating
to definitions), shall be reduced by 100% from the rate of the
tax imposed on the effective date of this subsection.
(b) Applicability.--The reduction under subsection (a) shall
apply for 60 days beginning on the effective date of this
subsection.
§ 90A04. Commonwealth indebtedness.
The maximum principal amount of additional debt to be
incurred under this section shall be $197,000,000. Debt shall be
incurred in accordance with the Capital Facilities Debt Enabling
Act, and the Motor License Fund shall be charged with the
repayment of the debt. The net proceeds from the sale of
obligations authorized in this section are appropriated to the
department to be used exclusively to defray financial costs of
capital projects during the period under section 90A03(b)
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(relating to consumer diesel fuel tax relief). The money
necessary to pay debt service or to pay arbitrage rebates
required under section 148 of the Internal Revenue Code of 1986
(Public Law 99-514, 26 U.S.C. § 148) due on the obligations
under this section is appropriated to the State Treasurer from
the Motor License Fund.
Section 2. This act shall take effect immediately.
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