[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 634 Introduced in Senate (IS)]







105th CONGRESS
  1st Session
                                 S. 634

 To amend the Internal Revenue Code of 1986 to deposit in the Highway 
Trust Fund the receipts of the 4.3-cent increase in the fuel tax rates 
enacted by the Omnibus Budget Reconciliation Act of 1993, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 23, 1997

   Mr. Baucus (for himself, Mr. Warner, and Mr. Byrd) introduced the 
 following bill; which was read twice and referred to the Committee on 
                                Finance

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to deposit in the Highway 
Trust Fund the receipts of the 4.3-cent increase in the fuel tax rates 
enacted by the Omnibus Budget Reconciliation Act of 1993, 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. RECEIPTS OF THE 4.3-CENT FUEL TAX RATE INCREASE DEPOSITED IN 
              THE HIGHWAY TRUST FUND; ESTABLISHMENT OF INTERCITY 
              PASSENGER RAIL ACCOUNT.

    (a) In General.--Section 9503(f) of the Internal Revenue Code of 
1986 (defining Highway Trust Fund financing rate) is amended--
            (1) in paragraph (1)(A), by striking ``11.5 cents per 
        gallon (14 cents per gallon after September 30, 1995)'' and 
        inserting ``18.3 cents per gallon''; and
            (2) in paragraph (1)(B), by striking ``17.5 cents per 
        gallon (20 cents per gallon after September 30, 1995)'' and 
        inserting ``24.3 cents per gallon''.
    (b) Conforming Amendments.--
            (1) Section 9503(f)(2) of such Code is amended--
                    (A) in subparagraph (B), by striking ``3 cents'' 
                and inserting ``7.3 cents'';
                    (B) in subparagraph (C), by striking ``zero'' and 
                inserting ``4.3 cents per gallon'';
                    (C) in subparagraph (D), by striking ``zero'' and 
                inserting ``48.54 cents per MCF (determined at standard 
                temperature and pressure)'';
                    (D) in subparagraph (E), by striking ``11.5 cents'' 
                and inserting ``15.8 cents''; and
                    (E) in subparagraph (E), by striking ``17.5 cents'' 
                and inserting ``21.8 cents''.
            (2) Section 9503(f)(3)(A) of such Code is amended to read 
        as follows:
                    ``(A) In general.--If the rate of tax on any fuel 
                is determined under section 4041(b)(2)(A), 4041(k), or 
                4081(c), the Highway Trust Fund financing rate is the 
                rate so determined after September 30, 1997. In the 
                case of a rate of tax determined under section 4081(c), 
                the preceding sentence shall be applied by increasing 
                the rate specified by 0.1 cent.''
            (3) Section 9503(f)(3)(C) of such Code is amended to read 
        as follows:
                    ``(C) Partially exempt methanol or ethanol fuel.--
                In the case of a rate of tax determined under section 
                4041(m), the Highway Trust Fund financing rate is the 
                rate so determined after September 30, 1995.''
            (4) Section 9503(f)(4) of such Code is amended by striking 
        ``zero'' and inserting ``4.3 cents per gallon''.
    (c) Establishment of Intercity Passenger Rail Account.--Section 
9503 of the Internal Revenue Code of 1986 (relating to Highway Trust 
Fund) is amended by adding at the end the following:
    ``(g) Establishment of Intercity Passenger Rail Account.--
            ``(1) Creation of account.--There is established in the 
        Highway Trust Fund a separate account to be known as the 
        `Intercity Passenger Rail Account', consisting of such amounts 
        as may be transferred or credited to the Intercity Passenger 
        Rail Account as provided in this subsection or section 9602(b).
            ``(2) Transfers to intercity passenger rail account.--
                    ``(A) In general.--The Secretary of the Treasury 
                shall transfer to the Intercity Passenger Rail Account 
                the intercity passenger rail portion of the amounts 
                appropriated to the Highway Trust Fund under subsection 
                (b) which are attributable to taxes under sections 4041 
                and 4081 imposed after September 30, 1997, and before 
                October 1, 2003.
                    ``(B) Intercity passenger rail portion.--For 
                purposes of subparagraph (A), the term `intercity 
                passenger rail portion' means an amount determined at 
                the rate of 0.5 cent for each gallon with respect to 
                which tax was imposed under section 4041 or 4081.
            ``(3) Expenditures from account.--
                    ``(A) In general.--Amounts in the Intercity 
                Passenger Rail Account shall be available without 
                fiscal year limitation to finance qualified expenses 
                of--
                            ``(i) the National Railroad Passenger 
                        Corporation, and
                            ``(ii) each non-Amtrak State, to the extent 
                        determined under subparagraph (B).
                    ``(B) Maximum amount of funds to non-amtrak 
                states.--Each non-Amtrak State shall receive under this 
                paragraph an amount equal to the lesser of--
                            ``(i) the State's qualified expenses for 
                        the fiscal year, or
                            ``(ii) the product of--
                                    ``(I) \1/12\ of 1 percent of the 
                                lesser of--
                                            ``(aa) the aggregate 
                                        amounts transferred and 
                                        credited to the Intercity 
                                        Passenger Rail Account under 
                                        paragraph (1) for such fiscal 
                                        year, or
                                            ``(bb) the aggregate 
                                        amounts appropriated from the 
                                        Intercity Passenger Rail 
                                        Account for such fiscal year, 
                                        and
                                    ``(II) the number of months such 
                                State is a non-Amtrak State in such 
                                fiscal year.
                If the amount determined under clause (ii) exceeds the 
                amount under clause (i) for any fiscal year, the amount 
                under clause (ii) for the following fiscal year shall 
                be increased by the amount of such excess.
            ``(4) Definitions.--For purposes of this subsection--
                    ``(A) Qualified expenses.--The term `qualified 
                expenses' means expenses incurred, with respect to 
                obligations made, after September 30, 1997, and before 
                October 1, 2003--
                            ``(i) for--
                                    ``(I) in the case of the National 
                                Railroad Passenger Corporation, the 
                                acquisition of equipment, 
rolling stock, and other capital improvements, the upgrading of 
maintenance facilities, and the maintenance of existing equipment, in 
intercity passenger rail service, and the payment of interest and 
principal on obligations incurred for such acquisition, upgrading, and 
maintenance, and
                                    ``(II) in the case of a non-Amtrak 
                                State, the acquisition of equipment, 
                                rolling stock, and other capital 
                                improvements, the upgrading of 
                                maintenance facilities, and the 
                                maintenance of existing equipment, in 
                                intercity passenger rail or bus 
                                service, and the payment of interest 
                                and principal on obligations incurred 
                                for such acquisition, upgrading, and 
                                maintenance, and
                            ``(ii) certified by the Secretary of 
                        Transportation on October 1 as meeting the 
                        requirements of clause (i) and as qualified for 
                        payment under paragraph (5) for the fiscal year 
                        beginning on such date.
                    ``(B) Non-amtrak state.--The term `non-Amtrak 
                State' means any State which does not receive intercity 
                passenger rail service from the National Railroad 
                Passenger Corporation.
            ``(5) Contract authority.--Notwithstanding any other 
        provision of law, the Secretary of Transportation shall certify 
        expenses as qualified for a fiscal year on October 1 of such 
        year, in an amount not to exceed the amount of receipts 
        estimated by the Secretary of the Treasury to be transferred to 
        the Intercity Passenger Rail Account for such fiscal year. Such 
        certification shall result in a contractual obligation of the 
        United States for the payment of such expenses.
            ``(6) Tax treatment of account expenditures.--With respect 
        to any payment of qualified expenses from the Intercity 
        Passenger Rail Account during any taxable year to a taxpayer--
                    ``(A) such payment shall not be included in the 
                gross income of the taxpayer for such taxable year,
                    ``(B) no deduction shall be allowed to the taxpayer 
                with respect to any amount paid or incurred which is 
                attributable to such payment, and
                    ``(C) the basis of any property shall be reduced by 
                the portion of the cost of such property which is 
                attributable to such payment.
            ``(7) Termination.--The Secretary shall determine and 
        retain, not later than October 1, 2003, the amount in the 
        Intercity Passenger Rail Account necessary to pay any 
        outstanding qualified expenses, and shall transfer any amount 
        not so retained to the Highway Trust Fund.''
    (d) Effective Dates.--
            (1) Transfer of taxes.--The amendments made by subsections 
        (a) and (b) apply to fuel removed after September 30, 1997.
            (2) Account.--The amendment made by subsection (c) applies 
        with respect to taxes imposed on and after October 1, 1997.
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