[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2474 Introduced in House (IH)]







105th CONGRESS
  1st Session
                                H. R. 2474

 To amend the Internal Revenue Code of 1986 to reduce the rate of the 
excise tax on diesel fuel used in trains by 1.25 cents per gallon, and 
                          for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 15, 1997

Mr. Petri (for himself, Mr. Oberstar, Mr. Christensen, Mr. McCrery, Mr. 
   Bachus, and Mr. Collins) introduced the following bill; which was 
              referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to reduce the rate of the 
excise tax on diesel fuel used in trains by 1.25 cents per gallon, and 
                          for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Railroad Tax Equity Adjustment Act 
of 1997''.

SEC. 2. EXCISE TAX ON DIESEL FUEL USED IN TRAINS REDUCED BY 1.25 CENTS 
              PER GALLON; FURTHER REDUCTIONS BASED ON HIGHWAY TRUST 
              FUND EXPENDITURES.

    (a) In General.--
            (1) Clause (ii) of section 4041(a)(1)(C) of the Internal 
        Revenue Code of 1986 (relating to rate of tax on trains) is 
        amended by striking ``shall be--'' and all that follows and 
        inserting ``shall be the applicable rate per gallon (as defined 
        in subparagraph (D)) for the fiscal year in which the taxable 
        event occurs.''.
            (2) Paragraph (1) of section 4041(a) of such Code is 
        amended by adding at the end the following new subparagraph:
                    ``(D) Applicable rate of tax on fuel used in 
                trains.--
                            ``(i) In general.--For purposes of 
                        subparagraph (C)(ii), the applicable rate for 
                        any fiscal year is 4.3 cents reduced (but not 
                        below zero) by the number of cents (rounded to 
                        the nearest 0.1 cent) which bears the same 
                        ratio to 4.3 cents as--
                                    ``(I) the excess of the 
                                expenditures from the Highway Trust 
                                Fund during the preceding fiscal year 
                                over the base expenditure amount for 
                                such preceding fiscal year, bears to
                                    ``(II) the amount deposited into 
                                the Highway Trust Fund during such 
                                preceding fiscal year to the extent 
                                attributable to 4.3 cents per gallon of 
                                the rates of the taxes imposed by 
                                sections 4041 and 4081.
                            ``(ii) Base expenditure amount.--For 
                        purposes of clause (i), the base expenditure 
                        amount means, with respect to any preceding 
                        fiscal year, the excess of the amount deposited 
                        into the Highway Trust Fund during such year 
                        over the amount described in clause (i)(II) for 
                        such year.''.
    (b) Conforming Amendments.--
            (1) Subparagraph (B) of section 6421(f)(3) of such Code is 
        amended by striking ``exceed--'' and all that follows and 
        inserting ``exceed the applicable rate per gallon (as defined 
        in section 4041(a)(1)(D)).''.
            (2) Subparagraph (B) of section 6427(l)(3) of such Code is 
        amended by striking ``exceed--'' and all that follows and 
        inserting ``exceed the applicable rate per gallon (as defined 
        in section 4041(a)(1)(D)).''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.
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