[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3549 Introduced in House (IH)]







105th CONGRESS
  2d Session
                                H. R. 3549

   To amend the Internal Revenue Code of 1986 to repeal the taxes on 
diesel fuel and gasoline used in trains which were enacted for deficit 
                               reduction.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 25, 1998

 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 repeal the taxes on 
diesel fuel and gasoline used in trains which were enacted for deficit 
                               reduction.

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

SECTION 1. REPEAL OF DEFICIT REDUCTION TAXES ON DIESEL FUEL AND 
              GASOLINE USED IN TRAINS.

    (a) Diesel Fuel.--Subparagraph (A) of section 4041(a)(1) of the 
Internal Revenue Code of 1986 (relating to diesel fuel and special 
motor fuel) is amended--
            (1) by striking ``or a diesel-powered train'' each place it 
        appears, and
            (2) by striking ``or train'' in clause (i).
    (b) Gasoline.--Paragraph (3) of section 6421(f) of such Code 
(relating to exempt sales; other payments or refunds available) is 
amended to read as follows:
            ``(3) Gasoline used in trains.--This section shall not 
        apply to gasoline used as a fuel in a train with respect to the 
        tax imposed by section 4081 at the Leaking Underground Storage 
        Tank Trust Fund financing rate.''.
    (c) Conforming Amendments.--
            (1) Subparagraph (C) of section 4041(a)(1) of such Code is 
        amended by striking clause (ii) and by redesignating clause 
        (iii) as clause (ii).
            (2) Subparagraph (C) of section 4041(a)(2) of such Code is 
        amended by striking all that follows ``section 6421(e)(2)'' and 
        inserting a period.
            (3) Paragraph (1) of section 4041(d) of such Code is 
        amended by inserting before the period ``or which would be so 
        imposed if subsection (a)(1)(A) included a reference to diesel-
        powered trains and if use of fuel in such a train were not an 
        off-highway business use''.
            (4) Subsection (f) of section 4082 of such Code (as 
        redesignated by section 1032 of the Taxpayer Relief Act of 
        1997) is amended by striking ``train and''.
            (5) Paragraph (3) of section 4083(a) of such Code is 
        amended by striking ``or a diesel-powered train''.
            (6) Paragraph (3) of section 6427(l) of such Code is 
        amended to read as follows:
            ``(3) Refund of certain taxes on fuel used in diesel-
        powered trains.--For purposes of this subsection, the term 
        `nontaxable use' includes fuel used in a diesel-powered train. 
        The preceding sentence shall not apply with respect to the 
        Leaking Underground Storage Tank Trust Fund financing rate 
        under sections 4041 and 4081 unless such fuel is used by a 
        State or any political subdivision thereof.''
    (d) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.
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