Gas Tax Equity Act of 2006

H.R. 5285, the Gas Tax Equity Act of 2006, proposed a 60-day suspension of federal excise taxes on gasoline, diesel, and kerosene to provide immediate price relief to consumers at the pump. To offset the lost revenue for infrastructure projects, the bill would have ended several federal subsidies and tax incentives for large oil companies, including royalty-free drilling in the Gulf of Mexico and certain foreign tax credits. Additionally, the legislation required major integrated oil companies to revalue their inventories for tax purposes and eliminated their ability to quickly write off costs related to searching for new oil and gas deposits.