113 HR 4848 IH: Repeal and Rebuild Act of 2014
U.S. House of Representatives
2014-06-11
text/xml
EN
Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
1.This Act may be cited as the Repeal and Rebuild Act of 2014
.
2.Repeal of excise tax on gasoline
(a)Section 4081(a)(2)(A)(i) of the Internal Revenue Code of 1986 is amended by striking 18.3 cents per gallon
and inserting 0 cents per gallon
.
(b)
(1)Section 4081(d)(1) of the Internal Revenue Code of 1986 is amended by striking clauses (i) and
and inserting clause
.
(2)Section 4041(a)(2)(B)(i) of the Internal Revenue Code of 1986 is amended by striking the rate of tax specified in section 4081(a)(2)(A)(i) which is in effect at the time of such sale
or use,
and inserting 18.3 cents per gallon
.
(c)The amendments made by this section shall apply to fuel sold or used after December 31, 2014.
3.Repeal of excise tax on tires
(a)Subchapter A of chapter 32 of subtitle D of the Internal Revenue Code of 1986 is amended by
striking part II (relating to tires).
(b)
(1)The table of parts for subchapter A of chapter 32 of subtitle D of the Internal Revenue Code of
1986 is amended by striking the item relating to part II.
(2)Section 9503(b)(1) of the Internal Revenue Code of 1986 is amended by striking subparagraph (C) and
redesignating subparagraphs (D) and (E) as subparagraphs (C) and (D),
respectively.
(3)Section 6412(a)(1) of the Internal Revenue Code of 1986 is amended—
(A)in the text by striking 4071 or
, and
(B)in the heading by striking Tires and taxable
and inserting Taxable
.
(4)Section 6416 of the Internal Revenue Code of 1986 is amended by striking subparagraph (C) of
subsection (b)(1).
(5)Section 4218 of the Internal Revenue Code of 1986 is amended—
(A)in subsection (a) by striking (other than a tire taxable under section 4071)
, and
(B)by striking subsection (b) and redesignating subsection (c) as subsection (b).
(6)Section 4221 of the Internal Revenue Code of 1986 is amended—
(A)in subsection (a) by striking or 4071,
, and
(B)in subsection (e) by striking paragraph (2).
(7)Section 4051 of the Internal Revenue Code of 1986 is amended by striking subsection (e).
(c)
(1)Except as provided by paragraph (2), the amendments made by this section shall apply to sales after
December 31, 2014.
(2)The amendments made by paragraphs (3), (4), (5), and (6) of subsection (b) shall apply to taxes
imposed after December 31, 2014.
(d)Special rule for floor stocks refunds relating to tires and taxable fuelsIn the case of an article subject to the tax imposed by section 4071 or 4081 before January 1,
2015, which has been sold, held, and not used and is intended for sale in
the manner specified by section 6412(a)(1) of the Internal Revenue Code of
1986, such section shall be applied by substituting—
(1)January 1, 2015
for October 1, 2016
,
(2)July 1, 2015
for January 1, 2017
, and
(3)October 1, 2015
for March 31, 2017
.
4.Double indexation of diesel fuels tax
(a)Paragraph (2) of section 4081(a) of the Internal Revenue Code of 1986 is amended by adding at the
end the following new subparagraph:
(E)Index for highway construction cost inflation and fuel efficiency
(i)In the case of any calendar year after 2014, the 24.3 cents rate in subparagraph (A)(iii) and the
19.7 cents rate in subparagraph (D), shall each be increased by an amount
equal to—
(I)such dollar amount, multiplied by
(II)the double indexation for the calendar year.Any increase determined under subparagraph (A) shall be rounded to the nearest tenth of a cent.(ii)Exception for fuel used in aviationThe adjustment under clause (i) shall not apply with respect to the rate of tax under subparagraph
(A)(iii) by reason of subparagraph (C).
(iii)For purposes of clause (i), the double indexation for any calendar year is the sum of—
(I)the highway construction cost adjustment, and
(II)the CAFE fuel saved adjustment.
(iv)Highway construction cost adjustmentFor purposes of clause (iii), the highway construction cost adjustment for any calendar year is the
percentage (if any) by which—
(I)the National Highway Construction Cost Index for the preceding calendar year, exceeds
(II)the National Highway Construction Cost Index for calendar year 2013.
(v)National Highway Construction Cost Index for any calendar yearFor purposes of clause (iv), the National Highway Construction Cost Index for any calendar year is
the average of the National Highway Construction Cost Index as of the
close of the 12-month period ending on August 31 of such calendar year.
(vi)National Highway Construction Cost IndexFor purposes of clause (iv), the term National Highway Construction Cost Index means the last National Highway Construction Cost Index published by the Department of
Transportation.
(vii)CAFE fuel saved adjustmentFor purposes of clause (iii), the CAFE fuel saved adjustment for a calendar year is the percentage
(if any) by which annual motor fuel use is reduced by the estimated CAFE
fuel saved for that calendar year from the annual motor fuel use for the
prior calendar year.
(viii)Estimated CAFE fuel savedThe term estimated CAFE fuel saved for a calendar year means the combined fuel saved estimates issued by the National Highway Traffic
Safety Administration and the Environmental Protection Agency for
passenger automobiles and light trucks and published in the Federal
Register on May 7, 2010, and October 15, 2012, as part of final rules to
implement corporate average fuel economy standards, and such successor
estimates included in successor rules.
(ix)The term annual motor fuel use means the total number of gallons of gasoline used in a calendar year in highway use, as published
by the Federal Highway Administration as part of its annual motor fuel use
survey.
(x)Not later than December 15, 2014, and annually thereafter, the Secretary shall publish the rates of
tax as adjusted under this subparagraph for the succeeding calendar year..
(b)Subsection (a) of section 4041 of the Internal Revenue Code of 1986 is amended by adding at the end
the following new paragraph:
(4)Highway inflation adjustment
(A)In the case of any calendar year after 2014, each dollar amount in paragraphs (1)(C)(iii)(I),
(2)(B)(ii), and (3)(A) of this subsection and in subsections (b)(2)(A)(i),
(b)(2)(C)(i), and (m)(1) shall be increased by an amount equal to—
(i)such dollar amount, multiplied by
(ii)the double indexation determined under section 4081(a)(2)(E) for the calendar year.
(B)Any increase determined under subparagraph (A) shall be rounded to the nearest tenth of a cent..
(c)Subparagraph (A) of section 4081(a)(2) of the Internal Revenue Code of 1986 is amended by striking The rate
and inserting Except as provided in subparagraph (C), the rate
.
(d)The amendments made by this section shall apply to periods beginning after December 31, 2014.
5.Increase in tax on petroleum; transfer to Highway Trust Fund
(a)Paragraph (1) of section 4611(c) of the Internal Revenue Code of 1986 is amended by striking and
at the end of subparagraph (A), by striking the period at the end of subparagraph (B) and
inserting , and
, and by inserting after subparagraph (B) the following new subparagraph:
(C)the Highway Trust Fund financing rate..
(b)
(1)Paragraph (2) of section 4611(c) of the Internal Revenue Code of 1986 is amended by striking and
at the end of subparagraph (A), by striking the period at the end of subparagraph (B) and
inserting , and
, and by inserting after subparagraph (B) the following new subparagraph:
(C)the Highway Trust Fund financing rate is $6.75 a barrel..
(2)Section 4611(c) of the Internal Revenue Code of 1986 is amended by adding at the end the following:
(3)Highway Trust Fund financing rate inflation adjustment
(A)In the case of any calendar year after 2014, the dollar amount in paragraph (2)(C) shall be
increased by an amount equal to—
(i)such dollar amount, multiplied by
(ii)the double indexation determined under section 4081(a)(2)(E) for the calendar year.
(B)Any increase determined under subparagraph (A) shall be rounded to the nearest tenth of a cent..
(3)Credit for manufacturers taxSection 4611 of the Internal Revenue Code of 1986 is amended by adding at the end the following:
(g)Credit for manufacturers tax
(1)Under regulations prescribed by the Secretary, there shall be allowed to the person liable for the
tax under subsection (d) a credit against so much of the tax imposed by
subsection (a) as relates to the Highway Trust Fund financing rate for
each gallon of fuel—
(A)produced, removed (within the meaning of section 4083(c)), or sold (as the case may be) with
respect to the barrel of crude oil or petroleum on which tax is imposed
under subsection (a), and
(B)on which tax is imposed under section 4081(a).
(2)Not applicable to gasolineParagraph (1) shall not apply to gasoline (as defined in section 4083(a)(2)).
(3)The amount of the credit allowable under paragraph (1) with respect to a gallon of a type of fuel
produced from a barrel shall be the product of—
(A)the Highway Trust Fund financing rate (as defined in section 4611(c)(2)) multiplied by 1/42,
(B)the sum of—
(i)1, plus
(ii)the absolute value of the processing gain from the refinery yield (expressed as a decimal number)
for the second calendar year preceding the year in which payment under
paragraph (1) is made, as determined by the Energy Information
Administration of the Department of Energy, and
(C)the refinery yield for a product (expressed as a decimal number) for the second calendar year
preceding the year in which payment under paragraph (1) is made, as
determined by the Energy Information Administration of the Department of
Energy..
(4)Leaking underground storage tank trust fund taxSection 4611 of the Internal Revenue Code of 1986, as amended by paragraph (3), is amended by
adding at the end the following:
(h)Leaking underground storage tank trust fund taxThe rate of tax specified in subsection (c)(1)(C) shall be increased by 0.1 cent per gallon
equivalent. For purposes of the preceding sentence, the per gallon
equivalent shall be determined in accordance with section 4611(g)(3) by
inserting 0.1 cent per gallon for the Highway Trust Fund financing rate in
subparagraph (A) thereof. The increase in tax under this subsection shall
in this title be added to and treated as part of the Leaking Underground
Storage Tank Trust Fund financing rate under section 4081(a)(2)(B)..
(c)Credit for alcohol fuel, biodiesel, and alternative fuel mixturesSection 6426(a) of the Internal Revenue Code of 1986 is amended by striking and
at the end of paragraph (1), by striking the period at the end of paragraph (2) and inserting , and
, and by inserting after paragraph (2) the following:
(3)against so much of the tax imposed by section 4611 as is attributable to subsection (c)(1)(C) an
amount equal to the sum of the credits described in subsections (b), (c),
and (e), determined on the same fraction of the amount of such tax as the
gallon of taxable fuel is of the whole barrel..
(d)Section 34(a) of the Internal Revenue Code of 1986 is amended by striking and
at the end of paragraph (2), by striking the period at the end of paragraph (3), and by inserting
after paragraph (3) the following new paragraph:
(4)under section 4611(g)(3)..
(e)The amendments made by this section shall take effect on January 1, 2015.
6.
(a)The Secretary of the Treasury shall, pursuant to subchapter I of chapter 31 of title 31, United
States Code, issue bonds which meet the terms and conditions of subsection
(b), and the bond revenue (other than capitalized interest described in
subsection (b)(2)) shall be transferred to the Highway Trust Fund and
allocated between the Highway Account and the Mass Transit Account using
the same ratio as provided under section 9503(e)(2) of the Internal
Revenue Code of 1986.
(b)The terms and conditions of bonds referred to in this subsection are the following:
(1)Bonds issued under subsection (a) shall have a term of 10 years.
(2)Interest shall be paid from the Temporary Transportation Bond Repayment Account.
(3)The Secretary of the Treasury may include capitalized interest in the principal amount of bonds
issued under subsection (a) to pay the interest that the issuer estimates
will become due and payable on the bonds prior to the receipt of
sufficient transfers under section 9503(g)(2) of the Internal Revenue Code
of 1986 to the Temporary Transportation Bond Repayment Account.
Capitalized interest shall be deposited into the Transportation Bond
Repayment Account and applied to interest on such bonds.
(4)The total face amount of bonds issued under this section may not exceed the amount the Secretary of
the Treasury determines can be redeemed, taking into account this section
and section 9503(g) of the Internal Revenue Code of 1986.
(c)Transfers of transportation bond proceedsSection 9503(b) of the Internal Revenue Code of 1986 is amended by adding at the end the following
new paragraph:
(7)Transfers of transportation bond proceedsThere are hereby appropriated to the Highway Trust Fund amounts equivalent to the proceeds received
in the Treasury before October 1, 2016, under section 6(a) of the Repeal and Rebuild Act of 2014..
(d)Temporary Transportation Bond Repayment accountSection 9503 of the Internal Revenue Code of 1986 is amended by adding at the end the following new
subsection:
(g)Establishment of Temporary Transportation Bond Repayment account
(1)There is established in the Highway Trust Fund a separate account to be known as the Temporary Transportation Bond Repayment Account
consisting of such amounts as may be transferred or credited to the Temporary Transportation Bond
Repayment Account as provided in this section.
(2)Transfers to Temporary Transportation Bond Repayment AccountThe Secretary of the Treasury shall transfer to the Temporary Transportation Bond Repayment Account
the excess of—
(A)the portion of the amounts appropriated to the Highway Trust Fund under subsection (b) which are
attributable to the increase in taxes under—
(i)section 4041 by reason of section 4041(a)(4),
(ii)section 4081 by reason of section 4081(a)(2)(E), and
(iii)section 4461 by reason of section 4611(c)(2)(C) and after the application of section 4461(g), over
(B)the amount estimated by the Secretary which would have been collected under section
4081(a)(2)(A)(i) and part II of subchapter A of chapter 32 if such
provisions had not been repealed.
(3)Expenditures from AccountAmounts in the Temporary Transportation Bond Repayment Account shall be available for redeeming
bonds issued under section 6 of the Repeal and Rebuild Act of 2014.
(4)The Temporary Transportation Bond Repayment Account shall close after all bonds issued under
section 6 of the Repeal and Rebuild Act of 2014 have been redeemed and all amounts in the account and all future revenue that would have
transferred to the account shall be transferred to the Highway Trust Fund
and allocated between the Highway Account and the Mass Transit Account in
the same ratio as provided under subsection (e)(2)..
(e)Section 9503(e)(5)(B) of the Internal Revenue Code of 1986 is amended by inserting or the Temporary Transportation Bond Repayment Account
before the period at the end.
(f)The amendments made by this section shall apply to periods after December 31, 2014.