1. Short title This Act may be cited as the Fueling Alternative Transportation with a Carbon Aviation Tax Act of 2023 . 2. Increase in excise tax for fuel used by private jets (a) In general (1) Retail excise tax Section 4041(c) of the Internal Revenue Code of 1986 is amended by striking paragraph (3) and inserting the following: (3) Rate of tax The rate of tax imposed by this subsection shall be— (A) with respect to any sale or use for commercial aviation, 4.3 cents per gallon, and (B) with respect to any sale or use which is not described in subparagraph (A), an amount equal to the sum of— (i) 35.9 cents per gallon, plus (ii) $1.589 per gallon. (4) Inflation adjustment In the case of any calendar year beginning after 2024, the dollar amount in paragraph (3)(B)(ii) shall be increased by an amount equal to— (A) such dollar amount, multiplied by (B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year, determined by substituting calendar year 2023 for calendar year 2016 in subparagraph (A)(ii) thereof. . (2) Manufacturers excise tax Section 4081(a)(2) of such Code is amended— (A) in subparagraph (C), by striking clause (ii) and inserting the following: (ii) in the case of use for aviation not described in clause (i), an amount equal to the sum of— (I) 35.9 cents per gallon, plus (II) $1.589 per gallon. , and (B) by adding at the end the following: (E) Inflation adjustment In the case of any calendar year beginning after 2024, the dollar amount in subparagraph (C)(ii)(II) shall be increased by an amount equal to— (i) such dollar amount, multiplied by (ii) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year, determined by substituting calendar year 2023 for calendar year 2016 in subparagraph (A)(ii) thereof. . (3) Conforming amendments (A) Section 4081(d)(2) of such Code is amended by striking (a)(2)(C)(ii) and inserting (a)(2)(C)(ii)(I) . (B) Section 6427(l)(4)(B)(ii)(II) of such Code is amended by striking section 4081(a)(2)(C)(ii) and inserting