Stimulus Update: Are You One of the Millions of Americans Eligible for a Gasoline Tax Rebate?

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KEY POINTS

  • Lawmakers in D.C. are currently debating stimulus funds to help offset the price of gasoline.
  • Some states have stepped up to the plate by making sure residents in need receive assistance covering fuel costs.

While we know millions of people will receive help from their state governments, we await word from Washington regarding federal assistance.

While geopolitical issues have always caused the price of gasoline to fluctuate, we never fail to act surprised. That may be because paying more at the pump is so painful. To alleviate the pain, Congressional representatives have proposed a bill that could help. In addition, some states are already on the case, providing financial relief to those most likely to feel the pinch of higher gas prices.

Here's a rundown of what's going on.

Federal government

Three Democrats in Congress -- Mike Thompson of California, John Larson of Connecticut, and Lauren Underwood of Illinois -- proposed the Gas Rebate Act of 2022. If passed, here's how it would work: Millions of Americans would receive an energy rebate check of $100 per month to help offset the high price of gasoline. Eligible families would also receive $100 for each dependent.

Income eligibility would closely match previous stimulus funds deposited into bank accounts across the country. Single filers earning up to $75,000 would receive the full payment, as would married filers filing jointly with incomes up to $150,000. And like earlier payments, there will be phase-out levels for those who earn more.

Representative Thompson explained the proposal like this: "Americans are feeling the impact at the pump of Vladimir Putin's illegal invasion of Ukraine, and right now we must work together on commonsense policy solutions to ease the financial burden that my constituents are feeling."

While the bill may make it through the House of Representatives due to the Democratic majority, it will take maneuvering to get it through the evenly split Senate. Despite the same problems facing us, the two parties remain mired in partisanship, made worse by the upcoming midterm elections.

States already providing relief

Connecticut

The state legislature in the Constitution State has suspended gas taxes until June 30, 2022.

Georgia

The Georgia legislature passed a bill suspending motor fuel excise tax collection through May 31, 2022.

Idaho

Idahoans are receiving a tax rebate of $75 per taxpayer and dependent to help offset the price of gas.

Indiana

Everyone who files their 2021 taxes in Indiana will receive a bonus tax refund of $125.

New Mexico

Single taxpayers in New Mexico with an income up to $75,000 receive a $250 grant to help cover higher fuel costs and married filing jointly taxpayers earning up to $150,000 receive $500.

States working on legislation

These two states are working to develop a plan that can help residents pay for gasoline.

California

Governor Gavin Newsome proposed sending a check for $400 to households with a vehicle (up to $800 for households with two cars).

Hawaii

The governor of Hawaii, David Ige, has proposed $100 refund bonuses to each taxpayer and dependent.

Gas prices rise and fall. It's nice to know that some states are sensitive to what people are going through. It will be interesting to see if Republicans are willing to work with Democrats at the national level to help a greater number of people.

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