[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3960 Introduced in House (IH)]







105th CONGRESS
  2d Session
                                H. R. 3960

To amend the Internal Revenue Code of 1986 to provide that the special 
motor fuels excise tax on water-phased hydrocarbon fuel emulsions shall 
          be based on their Btu content relative to gasoline.


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                    IN THE HOUSE OF REPRESENTATIVES

                              May 22, 1998

Mr. Ensign (for himself and Mr. Gibbons) introduced the following bill; 
         which was referred to the Committee on Ways and Means

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                                 A BILL


 
To amend the Internal Revenue Code of 1986 to provide that the special 
motor fuels excise tax on water-phased hydrocarbon fuel emulsions shall 
          be based on their Btu content relative to gasoline.

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

SECTION 1. SPECIAL MOTOR FUELS EXCISE TAX ON WATER-PHASED HYDROCARBON 
              FUEL EMULSIONS TO BE BASED ON THEIR BTU CONTENT RELATIVE 
              TO GASOLINE.

    (a) In General.--Subparagraph (B) of section 4041(a)(2) of the 
Internal Revenue Code of 1986 (relating to special motor fuels) is 
amended by striking ``and'' at the end of clause (ii), by striking the 
period at the end of clause (iii) and inserting ``, and'', and by 
inserting after clause (iii) the following new clause:
                                    ``(iv) 12.66 cents per gallon in 
                                the case of any water-phased 
                                hydrocarbon fuel.''
    (b) Definition.--Paragraph (2) of section 4041(a) of such Code is 
amended by adding at the end the following new subparagraph:
                    ``(C) Water-phased hydrocarbon fuel.--For purposes 
                of subparagraph (B), the term `water-phased hydrocarbon 
                fuel' means any liquid consisting of a hydrocarbon base 
                and water if not less than 20 percent (by volume) of 
                the liquid consists of water.''
    (c) Effective Date.--The amendments made by this section shall take 
effect on October 1, 1998.
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